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

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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 -12.45% and Operating profit at -266.82% 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 -12.45% and Operating profit at -266.82% over the last 5 years

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

NET PROFIT(HY) At CNY -90.32 MM has Grown at -440.59%
NET SALES(HY) At CNY 4,140.7 MM has Grown at -9.84%
INTEREST(Q) At CNY 16.04 MM has Grown at 46.01%

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.

25.36%

1.88

56.54%

China Shanghai Composite

14.77%

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)

-12.45%

EBIT Growth (5y)

-266.82%

EBIT to Interest (avg)

1.64

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.65

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

2.11

EV to EBIT

-81.35

EV to EBITDA

-136.87

EV to Capital Employed

1.95

EV to Sales

1.55

PEG Ratio

Dividend Yield

0.60%

ROCE (Latest)

-2.40%

ROE (Latest)

-1.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

10What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 43.77 MM has Grown at 301.77%

NET PROFIT(Q)

At CNY 32.28 MM has Grown at 451.65%

ROCE(HY)

Highest at 4.71%

RAW MATERIAL COST(Y)

Fallen by -22.84% (YoY

EPS(Q)

Highest at CNY 0.07

-19What is not working for the Company

NET PROFIT(HY)

At CNY -90.32 MM has Grown at -440.59%

NET SALES(HY)

At CNY 4,140.7 MM has Grown at -9.84%

INTEREST(Q)

At CNY 16.04 MM has Grown at 46.01%

DEBT-EQUITY RATIO (HY)

Highest at 17 %

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

Pre-Tax Profit

At CNY 43.77 MM has Grown at 301.77%

over average net sales of the previous four periods of CNY -21.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.28 MM has Grown at 451.65%

over average net sales of the previous four periods of CNY -9.18 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -22.84% (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 16.04 MM has Grown at 46.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 4,140.7 MM has Grown at -9.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 16.04 MM

in the last five periods and Increased by 46.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 17 %

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