Zhejiang Zoenn Design Co., Ltd. (300901) 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 Zoenn Design Co., Ltd.

Why is Zhejiang Zoenn Design Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 15.20%

The company has been able to generate a Return on Capital Employed (avg) of 15.20% 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 -8.39% and Operating profit at -35.15% over the last 5 years

Flat results in Mar 26

NET PROFIT(Q) At CNY -0.45 MM has Fallen at -160.26%
DEBT-EQUITY RATIO (HY) Highest at -1.98 %
INTEREST(Q) Highest at CNY 1.03 MM

With ROE of 0.45%, it has a expensive valuation with a 0.85 Price to Book Value

Over the past year, while the stock has generated a return of -8.64%, its profits have risen by 112.7% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -8.64% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Miscellaneous)

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

Is Zhejiang Zoenn Design Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zoenn Design Co., Ltd.

-6.35%

1.90

44.56%

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)

-8.39%

EBIT Growth (5y)

-35.15%

EBIT to Interest (avg)

41.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.36

Tax Ratio

2.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.20%

ROE (avg)

4.80%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

187

Industry P/E

Price to Book Value

0.85

EV to EBIT

60.57

EV to EBITDA

29.41

EV to Capital Employed

0.84

EV to Sales

2.08

PEG Ratio

1.66

Dividend Yield

ROCE (Latest)

1.39%

ROE (Latest)

0.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 46.67 MM

NET SALES(HY)

At CNY 195 MM has Grown at 30.96%

NET PROFIT(HY)

Higher at CNY 17.2 MM

RAW MATERIAL COST(Y)

Fallen by -125.54% (YoY

-16What is not working for the Company

NET PROFIT(Q)

At CNY -0.45 MM has Fallen at -160.26%

DEBT-EQUITY RATIO (HY)

Highest at -1.98 %

INTEREST(Q)

Highest at CNY 1.03 MM

PRE-TAX PROFIT(Q)

At CNY 0.92 MM has Fallen at -41.39%

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

Net Sales

At CNY 195 MM has Grown at 30.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 46.67 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -125.54% (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 Zoenn Design Co., Ltd.

Net Profit

At CNY -0.45 MM has Fallen at -160.26%

over average net sales of the previous four periods of CNY 0.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.03 MM has Grown at 57.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.03 MM

in the last five periods and Increased by 57.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 0.92 MM has Fallen at -41.39%

over average net sales of the previous four periods of CNY 1.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -1.98 %

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