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Zheshang Development Group Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Trading & Distributors
  • ISIN: CNE000000YS8
  • SHE: 000906
CNY
6.19
-0.23 (-3.58%)

Sep 22

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
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
2
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
3
Flat results in Mar 26
  • 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
4
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 -17.83%, 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
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -17.83% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Zheshang Development Group Co., Ltd. should be less than 10%
  2. 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%
-1.03
26.03%
China Shanghai Composite
3.23%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
2.99
Debt to EBITDA (avg)
12.78
Net Debt to Equity (avg)
3.03
Sales to Capital Employed (avg)
7.76
Tax Ratio
38.44%
Dividend Payout Ratio
41.43%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.63%
ROE (avg)
23.11%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.73
EV to EBIT
25.09
EV to EBITDA
21.83
EV to Capital Employed
0.95
EV to Sales
0.10
PEG Ratio
0.15
Dividend Yield
2.46%
ROCE (Latest)
3.78%
ROE (Latest)
11.75%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -158.18% (YoY

CASH AND EQV(HY)

Highest at CNY 16,446.79 MM

NET SALES(Q)

Highest at CNY 69,817.59 MM

NET PROFIT(Q)

Highest at CNY 115.74 MM

-9What is not working for the Company
INTEREST(HY)

At CNY 214.02 MM has Grown at 38.19%

DEBT-EQUITY RATIO (HY)

Highest at 448.63 %

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

Net Profit
At CNY 115.74 MM has Grown at 138.53%
over average net sales of the previous four periods of CNY 48.52 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales
Highest at CNY 69,817.59 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Sales
At CNY 69,817.59 MM has Grown at 15.98%
over average net sales of the previous four periods of CNY 60,198.8 MM
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Profit
Highest at CNY 115.74 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv
Highest at CNY 16,446.79 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -158.18% (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 214.02 MM has Grown at 38.19%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 448.63 %
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

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