Zhong Fu Tong Group Co., Ltd. (300560) 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

Zhong Fu Tong Group Co., Ltd.

Why is Zhong Fu Tong Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.49%

The company has been able to generate a Return on Capital Employed (avg) of 3.49% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.89% and Operating profit at -160.39% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.89% and Operating profit at -160.39% over the last 5 years

Positive results in Mar 26

NET SALES(HY) At CNY 528.15 MM has Grown at 40.21%
RAW MATERIAL COST(Y) Fallen by -45.53% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 10.21 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 56.85%, its profits have risen by 81.9%
At the current price, the company has a high dividend yield of 0

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 Construction)

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

Is Zhong Fu Tong Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhong Fu Tong Group Co., Ltd.

34.53%

1.60

64.26%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.89%

EBIT Growth (5y)

-160.39%

EBIT to Interest (avg)

0.66

Debt to EBITDA (avg)

10.55

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.58

Tax Ratio

3.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.05%

ROE (avg)

3.70%

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

5.07

EV to EBIT

-443.39

EV to EBITDA

259.02

EV to Capital Employed

3.78

EV to Sales

4.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.85%

ROE (Latest)

-1.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.45 MM has Grown at 289.79%

NET PROFIT(Q)

At CNY 6.86 MM has Grown at 272.13%

NET SALES(9M)

At CNY 813.35 MM has Grown at 20.3%

RAW MATERIAL COST(Y)

Fallen by -1.18% (YoY

-7What is not working for the Company

INTEREST(HY)

At CNY 14.92 MM has Grown at 6.72%

DEBT-EQUITY RATIO (HY)

Highest at 49.46 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.97 times

Here's what is working for Zhong Fu Tong Group Co., Ltd.

Pre-Tax Profit

At CNY 9.45 MM has Grown at 289.79%

over average net sales of the previous four periods of CNY -4.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.86 MM has Grown at 272.13%

over average net sales of the previous four periods of CNY -3.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 813.35 MM has Grown at 20.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -1.18% (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 Zhong Fu Tong Group Co., Ltd.

Interest

At CNY 14.92 MM has Grown at 6.72%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 49.46 %

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

Inventory Turnover Ratio

Lowest at 5.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio