Zhenhai Petrochemical Engineering Co., Ltd. (603637) 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

Zhenhai Petrochemical Engineering Co., Ltd.

Why is Zhenhai Petrochemical Engineering Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -14.09% and Operating profit at 24.33% over the last 5 years

The company declared very negative results in Mar'25 after flat results in Dec'24

NET SALES(9M) At CNY 294.94 MM has Grown at -9.84%
ROCE(HY) Lowest at 9.19%

With ROE of 8.54%, it has a very expensive valuation with a 3.00 Price to Book Value

Over the past year, while the stock has generated a return of 31.98%, its profits have fallen by -9.4%
At the current price, the company has a high dividend yield of 1.6

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 Zhenhai Petrochemical Engineering Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhenhai Petrochemical Engineering Co., Ltd.

92.84%

2.43

41.69%

China Shanghai Composite

21.74%

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)

-14.09%

EBIT Growth (5y)

24.33%

EBIT to Interest (avg)

64.53

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.91

Sales to Capital Employed (avg)

0.51

Tax Ratio

10.95%

Dividend Payout Ratio

36.10%

Pledged Shares

Institutional Holding

ROCE (avg)

205.09%

ROE (avg)

9.79%

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

2.85

EV to EBIT

21.51

EV to EBITDA

19.79

EV to Capital Employed

-74.10

EV to Sales

3.88

PEG Ratio

Dividend Yield

1.66%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

8.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,989.28 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.75 times

-25What is not working for the Company

NET SALES(Q)

At CNY 55.9 MM has Fallen at -51.57%

ROCE(HY)

Lowest at 5.61%

RAW MATERIAL COST(Y)

Grown by 55.95% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -3.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.3 %

PRE-TAX PROFIT(Q)

Lowest at CNY -1.61 MM

NET PROFIT(Q)

Lowest at CNY -2.44 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Zhenhai Petrochemical Engineering Co., Ltd.

Cash and Eqv

Highest at CNY 1,989.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Zhenhai Petrochemical Engineering Co., Ltd.

Net Sales

At CNY 55.9 MM has Fallen at -51.57%

over average net sales of the previous four periods of CNY 115.44 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -1.61 MM has Fallen at -108.57%

over average net sales of the previous four periods of CNY 18.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.44 MM has Fallen at -114.76%

over average net sales of the previous four periods of CNY 16.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -3.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -1.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -2.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 55.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales