Zhong Zhu Healthcare Holding Co., Ltd. (600568) 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 Zhu Healthcare Holding Co., Ltd.

Why is Zhong Zhu Healthcare Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -6.15% and Operating profit at 3.56% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 85.03 MM
DEBT-EQUITY RATIO (HY) Lowest at -23.67 %
INVENTORY TURNOVER RATIO(HY) Highest at 1.25%

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 104.14%, its profits have fallen by -266.8%

Market Beating performance in long term as well as near term

Along with generating 104.14% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhong Zhu Healthcare Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhong Zhu Healthcare Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhong Zhu Healthcare Holding Co., Ltd.

-100.0%

2.94

38.93%

China Shanghai Composite

15.19%

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)

-6.15%

EBIT Growth (5y)

3.56%

EBIT to Interest (avg)

-52.61

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.23

Tax Ratio

1.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.07%

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

1.74

EV to EBIT

-5.90

EV to EBITDA

-6.97

EV to Capital Employed

1.99

EV to Sales

4.59

PEG Ratio

Dividend Yield

ROCE (Latest)

-33.72%

ROE (Latest)

-33.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 85.03 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.67 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.25%

NET SALES(Q)

Highest at CNY 139.84 MM

PRE-TAX PROFIT(Q)

At CNY -16.17 MM has Grown at 85.65%

NET PROFIT(Q)

Highest at CNY -17.78 MM

EPS(Q)

Highest at CNY -0.01

-18What is not working for the Company

NET SALES(HY)

At CNY 273.45 MM has Grown at -25.55%

NET PROFIT(HY)

At CNY -545.58 MM has Grown at -395.41%

RAW MATERIAL COST(Y)

Grown by 9.47% (YoY

CASH AND EQV(HY)

Lowest at CNY 828.51 MM

Here's what is working for Zhong Zhu Healthcare Holding Co., Ltd.

Operating Cash Flow

Highest at CNY 85.03 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)

Net Sales

Highest at CNY 139.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -16.17 MM has Grown at 85.65%

over average net sales of the previous four periods of CNY -112.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -17.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -17.78 MM has Grown at 88.53%

over average net sales of the previous four periods of CNY -155.06 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -23.67 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.25%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Zhong Zhu Healthcare Holding Co., Ltd.

Cash and Eqv

Lowest at CNY 828.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 9.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales