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

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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 5.60% and Operating profit at -211.61% over the last 5 years

The company declared negative results in Mar'25 after positive results in Dec'24

NET SALES(Q) At CNY 83.12 MM has Fallen at -36.42%
INTEREST(Q) At CNY 1.91 MM has Grown at 35.44%
OPERATING PROFIT(Q) Lowest at CNY -101.35 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 -27.64%, its profits have risen by 25.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.64% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Zhongfu Information, Inc.

-14.29%

0.50

47.38%

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)

5.60%

EBIT Growth (5y)

-211.61%

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

1.77

EV to EBIT

-12.73

EV to EBITDA

-35.74

EV to Capital Employed

1.88

EV to Sales

2.60

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.78%

ROE (Latest)

-8.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -10.11 MM

NET PROFIT(HY)

Higher at CNY -22.03 MM

RAW MATERIAL COST(Y)

Fallen by -68.36% (YoY

-23What is not working for the Company

NET SALES(Q)

At CNY 83.12 MM has Fallen at -36.42%

INTEREST(Q)

At CNY 1.91 MM has Grown at 35.44%

OPERATING PROFIT(Q)

Lowest at CNY -101.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -121.93 %

PRE-TAX PROFIT(Q)

Lowest at CNY -86.68 MM

NET PROFIT(Q)

Lowest at CNY -86.19 MM

EPS(Q)

Lowest at CNY -0.33

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

Operating Cash Flow

Highest at CNY -10.11 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)

Raw Material Cost

Fallen by -68.36% (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.

Net Sales

At CNY 83.12 MM has Fallen at -36.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 1.91 MM has Grown at 35.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 83.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -101.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -121.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -86.68 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -86.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.33

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)