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. ?

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 18.92% and Operating profit at -24.70% 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 23.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 18.92% and Operating profit at -24.70% over the last 5 years

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

NET PROFIT(Q) At CNY -27.82 MM has Fallen at -162.53%
ROCE(HY) Lowest at 2.94%
INTEREST(Q) At CNY 109.57 MM has Grown at 63.66%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.25% 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 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 Trading & Distributors)

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

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zheshang Development Group Co., Ltd.

-100.0%

-1.00

23.92%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.92%

EBIT Growth (5y)

-24.70%

EBIT to Interest (avg)

3.01

Debt to EBITDA (avg)

10.60

Net Debt to Equity (avg)

3.03

Sales to Capital Employed (avg)

8.12

Tax Ratio

21.13%

Dividend Payout Ratio

38.42%

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

0.91

EV to EBIT

96.12

EV to EBITDA

54.71

EV to Capital Employed

0.98

EV to Sales

0.12

PEG Ratio

Dividend Yield

3.18%

ROCE (Latest)

1.02%

ROE (Latest)

9.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,010.51 MM

RAW MATERIAL COST(Y)

Fallen by -55% (YoY

NET SALES(Q)

Highest at CNY 63,458.32 MM

-19What is not working for the Company

NET PROFIT(Q)

At CNY -27.82 MM has Fallen at -162.53%

ROCE(HY)

Lowest at 2.94%

INTEREST(Q)

At CNY 109.57 MM has Grown at 63.66%

DEBT-EQUITY RATIO (HY)

Highest at 381.79 %

PRE-TAX PROFIT(Q)

At CNY 108.1 MM has Fallen at -33.32%

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

Operating Cash Flow

Highest at CNY 1,010.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 63,458.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 63,458.32 MM has Grown at 20.77%

over average net sales of the previous four periods of CNY 52,543.97 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -55% (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.

Net Profit

At CNY -27.82 MM has Fallen at -162.53%

over average net sales of the previous four periods of CNY 44.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 109.57 MM has Grown at 63.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 108.1 MM has Fallen at -33.32%

over average net sales of the previous four periods of CNY 162.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 381.79 %

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