Zhejiang Zhongjian Technology Co., Ltd. (002779) 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 Zhongjian Technology Co., Ltd.

Why is Zhejiang Zhongjian Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.80%

The company has been able to generate a Return on Capital Employed (avg) of 4.80% signifying low profitability per unit of total capital (equity and debt)

With ROE of 15.55%, it has a very expensive valuation with a 13.00 Price to Book Value

Over the past year, while the stock has generated a return of 1.69%, its profits have risen by 107.8% ; the PEG ratio of the company is 2.5
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 1.69% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

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 Automobiles)

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

Is Zhejiang Zhongjian Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhongjian Technology Co., Ltd.

1.69%

2.10

55.60%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.92%

EBIT Growth (5y)

4.88%

EBIT to Interest (avg)

14.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.01

Tax Ratio

8.83%

Dividend Payout Ratio

18.53%

Pledged Shares

Institutional Holding

ROCE (avg)

4.80%

ROE (avg)

5.30%

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

13.00

EV to EBIT

-510.20

EV to EBITDA

1122.15

EV to Capital Employed

11.37

EV to Sales

10.63

PEG Ratio

2.49

Dividend Yield

0.08%

ROCE (Latest)

-2.23%

ROE (Latest)

15.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

23What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 6.81 MM has Grown at 253.78%

NET PROFIT(HY)

Higher at CNY 178.78 MM

ROCE(HY)

Highest at 18.43%

RAW MATERIAL COST(Y)

Fallen by 0.92% (YoY

NET SALES(Q)

Highest at CNY 434.47 MM

-15What is not working for the Company

INTEREST(HY)

At CNY 4.1 MM has Grown at 195.8%

OPERATING CASH FLOW(Y)

Lowest at CNY -109.56 MM

DEBT-EQUITY RATIO (HY)

Highest at 18.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.47 times

NET PROFIT(Q)

At CNY 28.65 MM has Fallen at -33.74%

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

Net Sales

At CNY 434.47 MM has Grown at 71.33%

over average net sales of the previous four periods of CNY 253.59 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.81 MM has Grown at 253.78%

over average net sales of the previous four periods of CNY 1.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 434.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by 0.92% (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 Zhongjian Technology Co., Ltd.

Interest

At CNY 4.1 MM has Grown at 195.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -109.56 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 18.88 % 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

Net Profit

At CNY 28.65 MM has Fallen at -33.74%

over average net sales of the previous four periods of CNY 43.23 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 3.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio