Zhewen Interactive Group Co., Ltd. (600986) 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

Zhewen Interactive Group Co., Ltd.

Why is Zhewen Interactive Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.11%

The company has been able to generate a Return on Capital Employed (avg) of 2.11% signifying low profitability per unit of total capital (equity and debt)

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 -7.84% and Operating profit at -243.09% 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 3.43% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -7.84% and Operating profit at -243.09% over the last 5 years

The company has declared Negative results for the last 13 consecutive quarters

NET PROFIT(HY) At CNY 3.14 MM has Grown at -94.83%
INTEREST(HY) At CNY 30.98 MM has Grown at 31.51%

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 Miscellaneous)

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

Is Zhewen Interactive Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhewen Interactive Group Co., Ltd.

27.28%

2.63

60.12%

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)

-7.84%

EBIT Growth (5y)

-243.09%

EBIT to Interest (avg)

1.64

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.48

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

46.77%

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

ROE (avg)

3.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.36

EV to EBIT

-90.36

EV to EBITDA

-152.04

EV to Capital Employed

2.17

EV to Sales

1.72

PEG Ratio

Dividend Yield

0.54%

ROCE (Latest)

-2.40%

ROE (Latest)

-1.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

OPERATING CASH FLOW(Y)

Highest at CNY 425.52 MM

PRE-TAX PROFIT(Q)

At CNY 27.65 MM has Grown at 163.21%

NET PROFIT(Q)

At CNY 15.15 MM has Grown at 173.64%

RAW MATERIAL COST(Y)

Fallen by -19.62% (YoY

CASH AND EQV(HY)

Highest at CNY 2,907.16 MM

-16What is not working for the Company

NET PROFIT(HY)

At CNY 3.14 MM has Grown at -94.83%

INTEREST(HY)

At CNY 30.98 MM has Grown at 31.51%

Here's what is working for Zhewen Interactive Group Co., Ltd.

Pre-Tax Profit

At CNY 27.65 MM has Grown at 163.21%

over average net sales of the previous four periods of CNY -43.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.15 MM has Grown at 173.64%

over average net sales of the previous four periods of CNY -20.57 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 425.52 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,907.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -19.62% (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 Zhewen Interactive Group Co., Ltd.

Interest

At CNY 30.98 MM has Grown at 31.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)