Zhengyuan Zhihui Group Co., Ltd. (300645) 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

Zhengyuan Zhihui Group Co., Ltd.

Why is Zhengyuan Zhihui Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.60%

The company has been able to generate a Return on Capital Employed (avg) of 2.60% 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 3.21% and Operating profit at -190.19% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.15% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NO KEY NEGATIVE TRIGGERS

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 -40.48%, its profits have fallen by -143.1%
At the current price, the company has a high dividend yield of 0.1

Below par performance in long term as well as near term

Along with generating -40.48% 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 hold?

Overall Portfolio exposure to Zhengyuan Zhihui Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhengyuan Zhihui Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhengyuan Zhihui Group Co., Ltd.

-19.45%

0.31

44.53%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.21%

EBIT Growth (5y)

-190.19%

EBIT to Interest (avg)

0.81

Debt to EBITDA (avg)

3.57

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.57

Tax Ratio

62.95%

Dividend Payout Ratio

21.21%

Pledged Shares

Institutional Holding

ROCE (avg)

2.09%

ROE (avg)

6.15%

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

1.50

EV to EBIT

-237.60

EV to EBITDA

28.87

EV to Capital Employed

1.30

EV to Sales

2.51

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

-0.55%

ROE (Latest)

-1.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 8.47 MM has Grown at 1,617.95%

NET PROFIT(9M)

At CNY -11.1 MM has Grown at 41.63%

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 87.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.62 times

Here's what is working for Zhengyuan Zhihui Group Co., Ltd.

Pre-Tax Profit

At CNY 8.47 MM has Grown at 1,617.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.1 MM has Grown at 41.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Zhengyuan Zhihui Group Co., Ltd.

Debt-Equity Ratio

Highest at 87.04 %

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

Inventory Turnover Ratio

Lowest at 1.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio