Why is Zheshang Development Group Co., Ltd. ?
1
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 18.98% and Operating profit at -24.04% 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
2
Poor long term growth as Net Sales has grown by an annual rate of 18.98% and Operating profit at -24.04% over the last 5 years
3
The company has declared Negative results for the last 7 consecutive quarters
- NET PROFIT(9M) At CNY 145.69 MM has Grown at -63.19%
- ROCE(HY) Lowest at 6.45%
- INTEREST(Q) At CNY 87.92 MM has Grown at 39.08%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 1.12% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zheshang Development Group Co., Ltd.
-19.76%
-0.40
32.43%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
18.98%
EBIT Growth (5y)
-24.04%
EBIT to Interest (avg)
3.01
Debt to EBITDA (avg)
10.60
Net Debt to Equity (avg)
3.03
Sales to Capital Employed (avg)
8.27
Tax Ratio
21.13%
Dividend Payout Ratio
38.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.49%
ROE (avg)
23.11%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.86
EV to EBIT
95.17
EV to EBITDA
54.17
EV to Capital Employed
0.97
EV to Sales
0.12
PEG Ratio
NA
Dividend Yield
3.37%
ROCE (Latest)
1.02%
ROE (Latest)
9.88%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 3,574.22 MM
NET PROFIT(Q)
At CNY 149.8 MM has Grown at 119.94%
PRE-TAX PROFIT(Q)
At CNY 265.73 MM has Grown at 58.35%
-16What is not working for the Company
NET PROFIT(9M)
At CNY 145.69 MM has Grown at -63.19%
ROCE(HY)
Lowest at 6.45%
INTEREST(Q)
At CNY 87.92 MM has Grown at 39.08%
RAW MATERIAL COST(Y)
Grown by 121.43% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 23.24%
Here's what is working for Zheshang Development Group Co., Ltd.
Net Profit
At CNY 149.8 MM has Grown at 119.94%
over average net sales of the previous four periods of CNY 68.11 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 3,574.22 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 265.73 MM has Grown at 58.35%
over average net sales of the previous four periods of CNY 167.81 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Here's what is not working for Zheshang Development Group Co., Ltd.
Interest
At CNY 87.92 MM has Grown at 39.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 23.24%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 121.43% (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






