Zhongfu Information, Inc. (300659) 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

Zhongfu Information, Inc.

Why is Zhongfu Information, Inc. ?

Poor Management Efficiency with a low ROCE of 8.73%

The company has been able to generate a Return on Capital Employed (avg) of 8.73% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.91% and Operating profit at -205.74% over the last 5 years

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 -16.18%, its profits have risen by 25.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.18% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 IT - Hardware)

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

Is Zhongfu Information, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhongfu Information, Inc.

-13.92%

0.20

48.15%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.91%

EBIT Growth (5y)

-205.74%

EBIT to Interest (avg)

17.08

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.55

Tax Ratio

1.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.73%

ROE (avg)

3.36%

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

2.99

EV to EBIT

-22.18

EV to EBITDA

-62.31

EV to Capital Employed

3.28

EV to Sales

4.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.78%

ROE (Latest)

-8.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 52.03 MM

NET SALES(HY)

At CNY 392.38 MM has Grown at 28.23%

NET PROFIT(HY)

Higher at CNY -63.91 MM

ROCE(HY)

Highest at -6.96%

RAW MATERIAL COST(Y)

Fallen by -27.21% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.51 times

-2What is not working for the Company

INTEREST(Q)

At CNY 1.98 MM has Grown at 49.63%

Here's what is working for Zhongfu Information, Inc.

Operating Cash Flow

Highest at CNY 52.03 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

At CNY 392.38 MM has Grown at 28.23%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Higher at CNY -63.91 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY -63.91 MM has Grown at 44.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -27.21% (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 Zhongfu Information, Inc.

Interest

At CNY 1.98 MM has Grown at 49.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)