Zhejiang Zhengte 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Zhengte Co., Ltd.

Why is Zhejiang Zhengte Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.13%

The company has been able to generate a Return on Capital Employed (avg) of 2.13% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 17.22% and Operating profit at 6.75% over the last 5 years

With a growth in Net Sales of 24.71%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 3.36%
RAW MATERIAL COST(Y) Fallen by 1.15% (YoY)
NET SALES(Q) Highest at CNY 632.15 MM

With ROE of 3.26%, it has a fair valuation with a 1.03 Price to Book Value

Over the past year, while the stock has generated a return of 16.49%, its profits have risen by 3718% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Zhengte Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Zhejiang Zhengte Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhengte Co., Ltd.

16.49%

1.13

45.57%

China Shanghai Composite

16.95%

1.25

13.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.22%

EBIT Growth (5y)

6.75%

EBIT to Interest (avg)

17.30

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.92

Tax Ratio

61.13%

Dividend Payout Ratio

21.69%

Pledged Shares

Institutional Holding

ROCE (avg)

2.13%

ROE (avg)

1.45%

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

1.03

EV to EBIT

20.48

EV to EBITDA

9.93

EV to Capital Employed

1.02

EV to Sales

0.77

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

5.00%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

21What is working for the Company

ROCE(HY)

Highest at 3.36%

RAW MATERIAL COST(Y)

Fallen by 1.15% (YoY

NET SALES(Q)

Highest at CNY 632.15 MM

NET PROFIT(Q)

Highest at CNY 42.54 MM

EPS(Q)

Highest at CNY 0.28

-7What is not working for the Company

INTEREST(Q)

At CNY 1.63 MM has Grown at 31.1%

DEBT-EQUITY RATIO (HY)

Highest at 20.3 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.67 times

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

Net Sales

Highest at CNY 632.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 632.15 MM has Grown at 24.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 42.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 1.15% (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 Zhengte Co., Ltd.

Interest

At CNY 1.63 MM has Grown at 31.1%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 20.3 %

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

Debtors Turnover Ratio

Lowest at 4.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio