Zhejiang Zhengguang Industrial Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Zhengguang Industrial Co., Ltd.

Why is Zhejiang Zhengguang Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.65% and Operating profit at 12.17% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 95.56 MM
INTEREST(9M) At CNY 0.6 MM has Grown at 6.09%
ROCE(HY) Lowest at 5.38%

With ROE of 5.25%, it has a fair valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of 31.01%, its profits have fallen by -5.2%
At the current price, the company has a high dividend yield of 0.9

Market Beating Performance

The stock has generated a return of 31.01% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Zhengguang Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang Zhengguang Industrial Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhengguang Industrial Co., Ltd.

46.64%

0.91

41.58%

China Shanghai Composite

15.44%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.65%

EBIT Growth (5y)

12.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.31

Tax Ratio

12.87%

Dividend Payout Ratio

33.77%

Pledged Shares

Institutional Holding

ROCE (avg)

21.78%

ROE (avg)

12.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.49

EV to EBIT

2.40

EV to EBITDA

1.83

EV to Capital Employed

0.18

EV to Sales

0.34

PEG Ratio

Dividend Yield

0.88%

ROCE (Latest)

7.56%

ROE (Latest)

5.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.54% (YoY

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 95.56 MM

INTEREST(9M)

At CNY 0.6 MM has Grown at 6.09%

ROCE(HY)

Lowest at 5.38%

DEBT-EQUITY RATIO (HY)

Highest at -43.44 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.93%

OPERATING PROFIT(Q)

Lowest at CNY 21.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.98 %

PRE-TAX PROFIT(Q)

Lowest at CNY 26.94 MM

NET PROFIT(Q)

Lowest at CNY 23.01 MM

EPS(Q)

Lowest at CNY 0.18

Here's what is working for Zhejiang Zhengguang Industrial Co., Ltd.

Raw Material Cost

Fallen by 1.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Zhejiang Zhengguang Industrial Co., Ltd.

Operating Cash Flow

Lowest at CNY 95.56 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -43.44 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

At CNY 0.6 MM has Grown at 6.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 21.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 26.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 23.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.93%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio