Zhejiang Zhongcheng Packing Material Co., Ltd. (002522) 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 Zhongcheng Packing Material Co., Ltd.

Why is Zhejiang Zhongcheng Packing Material Co., Ltd. ?

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)

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%

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

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 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.

13.51%

1.49

46.95%

China Shanghai Composite

22.49%

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)

3.40%

EBIT Growth (5y)

-19.22%

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

Institutional Holding

ROCE (avg)

5.88%

ROE (avg)

4.60%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

144

Industry P/E

Price to Book Value

1.88

EV to EBIT

112.80

EV to EBITDA

27.94

EV to Capital Employed

1.82

EV to Sales

2.68

PEG Ratio

5.92

Dividend Yield

0.49%

ROCE (Latest)

1.62%

ROE (Latest)

1.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.96 times

RAW MATERIAL COST(Y)

Fallen by -15.27% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 169.28 MM

PRE-TAX PROFIT(Q)

At CNY 2.48 MM has Fallen at -80.56%

NET PROFIT(Q)

At CNY 11.65 MM has Fallen at -39.57%

EPS(Q)

Lowest at CNY 0.01

Here's what is working for Zhejiang Zhongcheng Packing Material Co., Ltd.

Inventory Turnover Ratio

Highest at 2.96 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -15.27% (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.

Pre-Tax Profit

At CNY 2.48 MM has Fallen at -80.56%

over average net sales of the previous four periods of CNY 12.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 169.28 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 Profit

At CNY 11.65 MM has Fallen at -39.57%

over average net sales of the previous four periods of CNY 19.29 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Non Operating Income

Highest at CNY 3.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income