Zheshang Development Group Co., Ltd. (000906) 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

Zheshang Development Group Co., Ltd.

Why is Zheshang Development Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.17% and Operating profit at -9.12% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 23.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.17% and Operating profit at -9.12% over the last 5 years

Positive results in Mar 26

NET SALES(9M) At CNY 184,424.77 MM has Grown at 19.91%
NET PROFIT(HY) Higher at CNY 189.64 MM
RAW MATERIAL COST(Y) Fallen by -170.59% (YoY)

With ROE of 11.75%, it has a expensive valuation with a 0.78 Price to Book Value

Over the past year, while the stock has generated a return of -11.76%, its profits have risen by 47.7% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.76% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zheshang Development Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Zheshang Development Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zheshang Development Group Co., Ltd.

-100.0%

-0.96

25.30%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.17%

EBIT Growth (5y)

-9.12%

EBIT to Interest (avg)

3.01

Debt to EBITDA (avg)

10.60

Net Debt to Equity (avg)

3.03

Sales to Capital Employed (avg)

7.76

Tax Ratio

21.13%

Dividend Payout Ratio

41.43%

Pledged Shares

Institutional Holding

ROCE (avg)

8.49%

ROE (avg)

23.11%

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

0.78

EV to EBIT

25.35

EV to EBITDA

22.06

EV to Capital Employed

0.96

EV to Sales

0.10

PEG Ratio

0.14

Dividend Yield

2.32%

ROCE (Latest)

3.78%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

NET SALES(9M)

At CNY 184,424.77 MM has Grown at 19.91%

NET PROFIT(HY)

Higher at CNY 189.64 MM

RAW MATERIAL COST(Y)

Fallen by -170.59% (YoY

CASH AND EQV(HY)

Highest at CNY 17,019.07 MM

-10What is not working for the Company

INTEREST(HY)

At CNY 211.01 MM has Grown at 39.61%

DEBT-EQUITY RATIO (HY)

Highest at 423.45 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 22.08 times

PRE-TAX PROFIT(Q)

At CNY 183.27 MM has Fallen at -28.24%

Here's what is working for Zheshang Development Group Co., Ltd.

Net Profit

At CNY 189.64 MM has Grown at 90.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 189.64 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Sales

At CNY 184,424.77 MM has Grown at 19.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 17,019.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -170.59% (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 Zheshang Development Group Co., Ltd.

Interest

At CNY 211.01 MM has Grown at 39.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 183.27 MM has Fallen at -28.24%

over average net sales of the previous four periods of CNY 255.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 423.45 %

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

Debtors Turnover Ratio

Lowest at 22.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio