Zhengping Road & Bridge Construction Co., Ltd. (603843) 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

Zhengping Road & Bridge Construction Co., Ltd.

Why is Zhengping Road & Bridge Construction Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -23.13% and Operating profit at -211.57% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared negative results for the last 13 consecutive quarters

INTEREST(HY) At CNY 112.33 MM has Grown at 31.05%
OPERATING CASH FLOW(Y) Lowest at CNY -422.2 MM
PRE-TAX PROFIT(Q) At CNY -15.52 MM has Fallen at -123.5%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 87.12%, its profits have risen by 1.9%

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 Construction)

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

Is Zhengping Road & Bridge Construction Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhengping Road & Bridge Construction Co., Ltd.

140.41%

2.40

64.25%

China Shanghai Composite

17.07%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-23.13%

EBIT Growth (5y)

-211.57%

EBIT to Interest (avg)

5.39

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

6.07

Sales to Capital Employed (avg)

0.44

Tax Ratio

4.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.45%

ROE (avg)

2.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

11.95

EV to EBIT

-16.97

EV to EBITDA

-18.59

EV to Capital Employed

1.99

EV to Sales

5.55

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.71%

ROE (Latest)

-185.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

4What is working for the Company

NET PROFIT(HY)

Higher at CNY -114.33 MM

RAW MATERIAL COST(Y)

Fallen by -39.66% (YoY

-32What is not working for the Company

INTEREST(HY)

At CNY 112.33 MM has Grown at 31.05%

OPERATING CASH FLOW(Y)

Lowest at CNY -422.2 MM

PRE-TAX PROFIT(Q)

At CNY -15.52 MM has Fallen at -123.5%

NET PROFIT(Q)

At CNY -11.64 MM has Fallen at -53.06%

NET SALES(HY)

At CNY 504.75 MM has Grown at -13.36%

ROCE(HY)

Lowest at -85.05%

DEBT-EQUITY RATIO (HY)

Highest at 872.28 %

CASH AND EQV(HY)

Lowest at CNY 174.1 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.32 times

Here's what is working for Zhengping Road & Bridge Construction Co., Ltd.

Raw Material Cost

Fallen by -39.66% (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 Zhengping Road & Bridge Construction Co., Ltd.

Interest

At CNY 112.33 MM has Grown at 31.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -15.52 MM has Fallen at -123.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.64 MM has Fallen at -53.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -422.2 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 Sales

At CNY 504.75 MM has Grown at -13.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 872.28 % 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

Cash and Eqv

Lowest at CNY 174.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio