Zheshang Securities Co., Ltd. (601878) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zheshang Securities Co., Ltd.

Why is Zheshang Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.25%

Poor long term growth as Net Sales has grown by an annual rate of 12.28% and Operating profit at 13.84%
The company has been able to generate a Return on Equity (avg) of 7.25% signifying low profitability per unit of shareholders funds

Negative results in Jun 25

NET SALES(Q) At CNY 3,518.63 MM has Fallen at -20.38%
INVENTORY TURNOVER RATIO(HY) Lowest at 0%
DEBTORS TURNOVER RATIO(HY) Lowest at 0%

With ROE of 6.39%, it has a very attractive valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of -16.45%, its profits have risen by 41.2% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -16.45% 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 hold?

Overall Portfolio exposure to Zheshang Securities Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Zheshang Securities Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zheshang Securities Co., Ltd.

-15.4%

0.03

22.44%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.28%

EBIT Growth (5y)

13.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

18.03%

Dividend Payout Ratio

30.61%

Pledged Shares

Institutional Holding

ROCE (avg)

13.16%

ROE (avg)

7.25%

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

1.22

EV to EBIT

12.49

EV to EBITDA

10.84

EV to Capital Employed

1.28

EV to Sales

2.37

PEG Ratio

0.46

Dividend Yield

0.53%

ROCE (Latest)

10.23%

ROE (Latest)

6.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 7,989.42 MM

NET PROFIT(HY)

At CNY 1,138.11 MM has Grown at 45.1%

ROCE(HY)

Highest at 7.22%

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

-36What is not working for the Company

NET SALES(Q)

At CNY 3,518.63 MM has Fallen at -20.38%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 101.08% (YoY

CASH AND EQV(HY)

Lowest at CNY 7,069.8 MM

EPS(Q)

Lowest at CNY 0

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

Net Profit

At CNY 1,138.11 MM has Grown at 45.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 1,138.11 MM has Grown at 45.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 7,989.42 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Cash Flow

Highest at CNY 7,989.42 MM

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 0 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Lowest at 0 %

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 Zheshang Securities Co., Ltd.

Net Sales

At CNY 3,518.63 MM has Fallen at -20.38%

over average net sales of the previous four periods of CNY 4,419.09 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

At CNY 3,518.63 MM has Fallen at -20.38%

over average net sales of the previous four periods of CNY 4,419.09 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Lowest at 0% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 7,069.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Cash and Eqv

Lowest at CNY 7,069.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 101.08% (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

Raw Material Cost

Grown by 101.08% (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