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 -8.31% and Operating profit at -194.85% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY -34.06 MM has Grown at -54.63%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.17 times
NET SALES(Q) Lowest at CNY 58.32 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 -20.66%, its profits have risen by 28.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.66% 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.

-27.25%

-0.27

45.46%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.31%

EBIT Growth (5y)

-194.85%

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)

0.54

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

1.40

EV to EBIT

-9.58

EV to EBITDA

-20.85

EV to Capital Employed

1.46

EV to Sales

2.12

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.24%

ROE (Latest)

-8.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly 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 123.62 MM

NET PROFIT(HY)

Higher at CNY -34.06 MM

RAW MATERIAL COST(Y)

Fallen by -119.91% (YoY

-18What is not working for the Company

NET PROFIT(HY)

At CNY -34.06 MM has Grown at -54.63%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.17 times

NET SALES(Q)

Lowest at CNY 58.32 MM

OPERATING PROFIT(Q)

Lowest at CNY -91.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -157.3 %

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

Operating Cash Flow

Highest at CNY 123.62 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 Profit

Higher at CNY -34.06 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

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

Net Profit (CNY MM)

Raw Material Cost

Fallen by -119.91% (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 Profit

At CNY -34.06 MM has Grown at -54.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 58.32 MM has Fallen at -29.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 58.32 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -91.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -157.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio