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)

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 0.55% and Operating profit at -194.77% 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 0.55% and Operating profit at -194.77% over the last 5 years

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

NET SALES(HY) At CNY 626.3 MM has Grown at -16.33%
OPERATING CASH FLOW(Y) Lowest at CNY -120.32 MM
DEBT-EQUITY RATIO (HY) Highest at 52.25 %

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 15.12%, 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.

15.12%

0.76

58.51%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.55%

EBIT Growth (5y)

-194.77%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

5.96

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.57

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

3.20

EV to EBIT

-42.68

EV to EBITDA

-166.40

EV to Capital Employed

2.56

EV to Sales

3.53

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.00%

ROE (Latest)

-9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 3.54 MM has Grown at 114.62%

NET PROFIT(Q)

At CNY 6.12 MM has Grown at 131.35%

RAW MATERIAL COST(Y)

Fallen by -55.51% (YoY

NET SALES(Q)

Highest at CNY 326.89 MM

-12What is not working for the Company

NET SALES(HY)

At CNY 626.3 MM has Grown at -16.33%

OPERATING CASH FLOW(Y)

Lowest at CNY -120.32 MM

DEBT-EQUITY RATIO (HY)

Highest at 52.25 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.76 times

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

Net Sales

At CNY 326.89 MM has Grown at 31.81%

over average net sales of the previous four periods of CNY 248 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 3.54 MM has Grown at 114.62%

over average net sales of the previous four periods of CNY -24.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.12 MM has Grown at 131.35%

over average net sales of the previous four periods of CNY -19.51 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 326.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -55.51% (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.

Operating Cash Flow

Lowest at CNY -120.32 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 52.25 %

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 5.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio