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.

-4.03%

2.63

60.12%

China Shanghai Composite

21.43%

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)

-3.86%

EBIT Growth (5y)

-15.78%

EBIT to Interest (avg)

1.64

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.24

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

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

121

Industry P/E

Price to Book Value

2.04

EV to EBIT

247.83

EV to EBITDA

100.63

EV to Capital Employed

1.76

EV to Sales

1.55

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

0.71%

ROE (Latest)

1.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 361.34 MM

PRE-TAX PROFIT(Q)

At CNY 25.23 MM has Grown at 142.78%

RAW MATERIAL COST(Y)

Fallen by -17.54% (YoY

CASH AND EQV(HY)

Highest at CNY 3,777.12 MM

NET PROFIT(Q)

At CNY 31.41 MM has Grown at 83.03%

-14What is not working for the Company

INTEREST(HY)

At CNY 43.26 MM has Grown at 60.02%

NET SALES(Q)

At CNY 1,755.1 MM has Fallen at -15.91%

ROCE(HY)

Lowest at -0.91%

DEBT-EQUITY RATIO (HY)

Highest at 38.02 %

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

Operating Cash Flow

Highest at CNY 361.34 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 25.23 MM has Grown at 142.78%

over average net sales of the previous four periods of CNY 10.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 31.41 MM has Grown at 83.03%

over average net sales of the previous four periods of CNY 17.16 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,777.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -17.54% (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 43.26 MM has Grown at 60.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,755.1 MM has Fallen at -15.91%

over average net sales of the previous four periods of CNY 2,087.15 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 38.02 %

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