Zhende Medical Co., Ltd. (603301) 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

Zhende Medical Co., Ltd.

Why is Zhende Medical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 36.27%

The company has been able to generate a Return on Capital Employed (avg) of 36.27% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -17.97% and Operating profit at -39.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 21.96% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -17.97% and Operating profit at -39.75% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 15.71 MM has Grown at 18.75%
OPERATING CASH FLOW(Y) Lowest at CNY 430.8 MM
DEBT-EQUITY RATIO (HY) Highest at 6.66 %

With ROE of 4.62%, it has a expensive valuation with a 4.02 Price to Book Value

Over the past year, while the stock has generated a return of 101.00%, its profits have fallen by -30.4%
At the current price, the company has a high dividend yield of 0.3

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 Zhende Medical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhende Medical Co., Ltd.

94.58%

5.53

52.10%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.97%

EBIT Growth (5y)

-39.75%

EBIT to Interest (avg)

12.92

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.62

Tax Ratio

17.14%

Dividend Payout Ratio

30.42%

Pledged Shares

Institutional Holding

ROCE (avg)

8.81%

ROE (avg)

21.96%

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

4.02

EV to EBIT

76.24

EV to EBITDA

43.64

EV to Capital Employed

3.91

EV to Sales

5.35

PEG Ratio

Dividend Yield

0.35%

ROCE (Latest)

5.13%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,461.79

RAW MATERIAL COST(Y)

Fallen by -0.89% (YoY

NET SALES(Q)

Highest at CNY 1,223.65 MM

OPERATING PROFIT(Q)

Highest at CNY 186.52 MM

PRE-TAX PROFIT(Q)

Highest at CNY 108.48 MM

NET PROFIT(Q)

Highest at CNY 90.07 MM

EPS(Q)

Highest at CNY 0.34

-11What is not working for the Company

INTEREST(HY)

At CNY 15.71 MM has Grown at 18.75%

OPERATING CASH FLOW(Y)

Lowest at CNY 430.8 MM

DEBT-EQUITY RATIO (HY)

Highest at 6.66 %

CASH AND EQV(HY)

Lowest at CNY 2,029.35 MM

Here's what is working for Zhende Medical Co., Ltd.

Interest Coverage Ratio

Highest at 2,461.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 1,223.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 186.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 108.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 90.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -0.89% (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 Zhende Medical Co., Ltd.

Interest

At CNY 15.71 MM has Grown at 18.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 6.66 % 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

Operating Cash Flow

Lowest at CNY 430.8 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 2,029.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

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