Zhejiang Zhenyuan Share Co., Ltd. (000705) 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 Zhenyuan Share Co., Ltd.

Why is Zhejiang Zhenyuan Share Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -4.39% and Operating profit at -27.20% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.02% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.39% and Operating profit at -27.20% over the last 5 years

With a fall in Net Sales of -6.63%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -48.31 MM
PRE-TAX PROFIT(Q) At CNY 0.35 MM has Fallen at -97.44%
NET PROFIT(Q) At CNY -0.2 MM has Fallen at -101.72%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zhejiang Zhenyuan Share Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhenyuan Share Co., Ltd.

6.81%

0.58

30.79%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.39%

EBIT Growth (5y)

-27.20%

EBIT to Interest (avg)

26.75

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.66

Tax Ratio

32.25%

Dividend Payout Ratio

57.75%

Pledged Shares

Institutional Holding

ROCE (avg)

4.80%

ROE (avg)

4.02%

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

1.70

EV to EBIT

182.60

EV to EBITDA

26.77

EV to Capital Employed

1.78

EV to Sales

1.06

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

0.97%

ROE (Latest)

2.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -55.96% (YoY

NET PROFIT(9M)

Higher at CNY 56.06 MM

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -48.31 MM

PRE-TAX PROFIT(Q)

At CNY 0.35 MM has Fallen at -97.44%

NET PROFIT(Q)

At CNY -0.2 MM has Fallen at -101.72%

ROCE(HY)

Lowest at 2.37%

NET SALES(Q)

Lowest at CNY 496.36 MM

INTEREST(Q)

At CNY 1.4 MM has Grown at 80.42%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.47 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.25 times

OPERATING PROFIT(Q)

Lowest at CNY -2.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.49 %

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

Raw Material Cost

Fallen by -55.96% (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 Zhenyuan Share Co., Ltd.

Net Sales

At CNY 496.36 MM has Fallen at -35.22%

over average net sales of the previous four periods of CNY 766.28 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 0.35 MM has Fallen at -97.44%

over average net sales of the previous four periods of CNY 13.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.2 MM has Fallen at -101.72%

over average net sales of the previous four periods of CNY 11.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -48.31 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)

Net Sales

Lowest at CNY 496.36 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 1.4 MM has Grown at 80.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -2.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 12.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income