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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.46% and Operating profit at 14.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.15% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(9M) At CNY 7.18 MM has Grown at -28.51%
ROCE(HY) Lowest at 0.81%
INTEREST COVERAGE RATIO(Q) Lowest at 318.92

With ROE of 1.66%, it has a very expensive valuation with a 2.44 Price to Book Value

Over the past year, while the stock has generated a return of 12.05%, its profits have fallen by -58.8%
At the current price, the company has a high dividend yield of 0.1

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 Software Products)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhengyuan Zhihui Group Co., Ltd.

12.05%

0.95

58.15%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

14.27%

EBIT to Interest (avg)

1.16

Debt to EBITDA (avg)

3.60

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.59

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

23.34%

Pledged Shares

Institutional Holding

ROCE (avg)

2.60%

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

147

Industry P/E

Price to Book Value

2.44

EV to EBIT

120.63

EV to EBITDA

14.68

EV to Capital Employed

1.83

EV to Sales

2.85

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

1.51%

ROE (Latest)

1.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 297.8 MM

RAW MATERIAL COST(Y)

Fallen by -12.98% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 28.54 MM

NET PROFIT(Q)

Highest at CNY 25.56 MM

EPS(Q)

Highest at CNY 0.18

-10What is not working for the Company

NET PROFIT(9M)

At CNY 7.18 MM has Grown at -28.51%

ROCE(HY)

Lowest at 0.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 318.92

DEBT-EQUITY RATIO (HY)

Highest at 80.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.44 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.31 times

OPERATING PROFIT MARGIN(Q)

Lowest at 10.01 %

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

Operating Cash Flow

Highest at CNY 297.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 28.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 28.54 MM has Grown at 58.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 25.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -12.98% (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 Zhengyuan Zhihui Group Co., Ltd.

Interest Coverage Ratio

Lowest at 318.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 10.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 80.04 %

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 1.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio