Why is Zhejiang Zhongcheng Packing Material Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.88%
- The company has been able to generate a Return on Capital Employed (avg) of 5.88% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 4.92% and Operating profit at -11.95% over the last 5 years
- OPERATING CASH FLOW(Y) Lowest at CNY 197.15 MM
- NET SALES(Q) Lowest at CNY 352.04 MM
- PRE-TAX PROFIT(Q) At CNY 7.46 MM has Fallen at -30.88%
3
With ROE of 1.30%, it has a expensive valuation with a 1.81 Price to Book Value
- Over the past year, while the stock has generated a return of 31.25%, its profits have risen by 24.4% ; the PEG ratio of the company is 5.7
- At the current price, the company has a high dividend yield of 0.5
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 Packaging)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhejiang Zhongcheng Packing Material Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang Zhongcheng Packing Material Co., Ltd.
-100.0%
1.49
46.95%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.92%
EBIT Growth (5y)
-11.95%
EBIT to Interest (avg)
3.05
Debt to EBITDA (avg)
1.03
Net Debt to Equity (avg)
0.09
Sales to Capital Employed (avg)
0.53
Tax Ratio
53.87%
Dividend Payout Ratio
30.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.88%
ROE (avg)
4.60%
Valuation Key Factors 
Factor
Value
P/E Ratio
139
Industry P/E
Price to Book Value
1.81
EV to EBIT
108.85
EV to EBITDA
26.96
EV to Capital Employed
1.76
EV to Sales
2.59
PEG Ratio
5.70
Dividend Yield
0.51%
ROCE (Latest)
1.62%
ROE (Latest)
1.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -18.25% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.92%
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 197.15 MM
NET SALES(Q)
Lowest at CNY 352.04 MM
PRE-TAX PROFIT(Q)
At CNY 7.46 MM has Fallen at -30.88%
Here's what is working for Zhejiang Zhongcheng Packing Material Co., Ltd.
Inventory Turnover Ratio
Highest at 2.92%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -18.25% (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 Zhongcheng Packing Material Co., Ltd.
Net Sales
At CNY 352.04 MM has Fallen at -16.82%
over average net sales of the previous four periods of CNY 423.24 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 197.15 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 352.04 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 7.46 MM has Fallen at -30.88%
over average net sales of the previous four periods of CNY 10.8 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)






