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

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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)

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 3.66% and Operating profit at -195.60% 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 3.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.66% and Operating profit at -195.60% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -82.43 MM has Grown at -379.92%
OPERATING CASH FLOW(Y) Lowest at CNY -10.64 MM
NET SALES(HY) At CNY 370.81 MM has Grown at -13.7%

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 1.82%, its profits have fallen by -541.3%
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.

11.09%

1.22

45.56%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.66%

EBIT Growth (5y)

-195.60%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

5.96

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.56

Tax Ratio

7.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.49%

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

2.42

EV to EBIT

-33.46

EV to EBITDA

-130.42

EV to Capital Employed

2.01

EV to Sales

2.77

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.00%

ROE (Latest)

-9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.1 MM has Grown at 136.97%

NET PROFIT(Q)

At CNY 7.67 MM has Grown at 139.89%

RAW MATERIAL COST(Y)

Fallen by -22.38% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 36.89 %

-21What is not working for the Company

NET PROFIT(HY)

At CNY -82.43 MM has Grown at -379.92%

OPERATING CASH FLOW(Y)

Lowest at CNY -10.64 MM

NET SALES(HY)

At CNY 370.81 MM has Grown at -13.7%

ROCE(HY)

Lowest at -12.3%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.38%

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

Pre-Tax Profit

At CNY 9.1 MM has Grown at 136.97%

over average net sales of the previous four periods of CNY -24.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.67 MM has Grown at 139.89%

over average net sales of the previous four periods of CNY -19.23 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 36.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -22.38% (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.

Net Sales

At CNY 370.81 MM has Grown at -13.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -10.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 8.38%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio