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

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 3.97% and Operating profit at 14.65%
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 Sep 25

RAW MATERIAL COST(Y) Grown by 29.96% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 206.14 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0.43 times

With ROE of 6.39%, it has a very attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -9.97%, 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 -9.97% 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.

-8.93%

-0.16

20.14%

China Shanghai Composite

24.7%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.97%

EBIT Growth (5y)

14.65%

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

1.43

EV to EBIT

15.23

EV to EBITDA

13.22

EV to Capital Employed

1.56

EV to Sales

2.89

PEG Ratio

0.54

Dividend Yield

0.45%

ROCE (Latest)

10.23%

ROE (Latest)

6.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly 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

11What is working for the Company

ROCE(HY)

Highest at 7.93%

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.74%

DIVIDEND PER SHARE(HY)

Highest at CNY 0.43

PRE-TAX PROFIT(Q)

Highest at CNY 1,088.9 MM

NET PROFIT(Q)

Highest at CNY 743.04 MM

EPS(Q)

Highest at CNY 0.16

-15What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 29.96% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 206.14 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.43 times

NET SALES(Q)

Lowest at CNY 1,087.58 MM

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

Pre-Tax Profit

Highest at CNY 1,088.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 743.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Dividend per share

Highest at CNY 0.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 42.74%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Zheshang Securities Co., Ltd.

Net Sales

At CNY 1,087.58 MM has Fallen at -71.15%

over average net sales of the previous four periods of CNY 3,769.66 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,087.58 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 206.14 %

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 0.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 29.96% (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