Zhenjiang Dongfang Electric Heating Technology Co., Ltd. (300217) 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

Zhenjiang Dongfang Electric Heating Technology Co., Ltd.

Why is Zhenjiang Dongfang Electric Heating Technology Co., Ltd. ?

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY 33.39 MM has Grown at -59.8%
ROCE(HY) Lowest at 3.32%
INTEREST COVERAGE RATIO(Q) Lowest at 8,014.46

With ROE of 5.20%, it has a fair valuation with a 1.98 Price to Book Value

Over the past year, while the stock has generated a return of -1.16%, its profits have fallen by -35.7%
At the current price, the company has a high dividend yield of 0.6

Below par performance in long term as well as near term

Along with generating -1.16% 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 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 Building Products)

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

Is Zhenjiang Dongfang Electric Heating Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhenjiang Dongfang Electric Heating Technology Co., Ltd.

-1.16%

0.90

34.95%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.97%

EBIT Growth (5y)

129.37%

EBIT to Interest (avg)

45.55

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.78

Tax Ratio

13.85%

Dividend Payout Ratio

15.18%

Pledged Shares

Institutional Holding

ROCE (avg)

9.53%

ROE (avg)

8.88%

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

1.98

EV to EBIT

42.39

EV to EBITDA

26.15

EV to Capital Employed

2.30

EV to Sales

2.11

PEG Ratio

Dividend Yield

0.57%

ROCE (Latest)

5.43%

ROE (Latest)

5.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 404.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at -28.08 %

-24What is not working for the Company

NET PROFIT(HY)

At CNY 33.39 MM has Grown at -59.8%

ROCE(HY)

Lowest at 3.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,014.46

RAW MATERIAL COST(Y)

Grown by 46.14% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.62 times

NET SALES(Q)

Lowest at CNY 595.96 MM

OPERATING PROFIT(Q)

Lowest at CNY 25.53 MM

PRE-TAX PROFIT(Q)

At CNY 31.03 MM has Fallen at -37.55%

Here's what is working for Zhenjiang Dongfang Electric Heating Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 404.5 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -28.08 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Zhenjiang Dongfang Electric Heating Technology Co., Ltd.

Net Profit

At CNY 33.39 MM has Grown at -59.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 595.96 MM has Fallen at -27.19%

over average net sales of the previous four periods of CNY 818.51 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 8,014.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 595.96 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 25.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

At CNY 31.03 MM has Fallen at -37.55%

over average net sales of the previous four periods of CNY 49.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 46.14% (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