Zhonglu Co., Ltd. (600818) 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

Zhonglu Co., Ltd.

Why is Zhonglu Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.71%

The company has been able to generate a Return on Capital Employed (avg) of 0.71% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.54% and Operating profit at -217.11% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.54% and Operating profit at -217.11% over the last 5 years

With a fall in Net Sales of -3.83%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 8 consecutive quarters
NET SALES(HY) At CNY 423.22 MM has Grown at -26.25%
NET PROFIT(HY) At CNY -10.54 MM has Grown at -59.63%
OPERATING CASH FLOW(Y) Lowest at CNY -76.24 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 -12.99%, its profits have fallen by -247.6%

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 Media & Entertainment)

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

Is Zhonglu Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhonglu Co., Ltd.

-100.0%

-1.01

39.82%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.54%

EBIT Growth (5y)

-217.11%

EBIT to Interest (avg)

-5.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.60

Tax Ratio

1.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.71%

ROE (avg)

4.15%

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

2.82

EV to EBIT

-25.80

EV to EBITDA

-39.97

EV to Capital Employed

3.05

EV to Sales

1.34

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

-11.83%

ROE (Latest)

-12.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -9.98% (YoY

OPERATING PROFIT(Q)

Highest at CNY 2.93 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.21 %

NET PROFIT(Q)

Highest at CNY 7.65 MM

EPS(Q)

Highest at CNY 0.01

-31What is not working for the Company

NET SALES(HY)

At CNY 423.22 MM has Grown at -26.25%

NET PROFIT(HY)

At CNY -10.54 MM has Grown at -59.63%

OPERATING CASH FLOW(Y)

Lowest at CNY -76.24 MM

ROCE(HY)

Lowest at -11.95%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.71 times

INTEREST(Q)

At CNY 1.35 MM has Grown at 61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.29 times

Here's what is working for Zhonglu Co., Ltd.

Net Profit

At CNY 7.65 MM has Grown at 149.84%

over average net sales of the previous four periods of CNY -15.35 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 2.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 1.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at CNY 7.65 MM

in the last five periods

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)

Raw Material Cost

Fallen by -9.98% (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 Zhonglu Co., Ltd.

Net Sales

At CNY 423.22 MM has Grown at -26.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 1.35 MM has Grown at 61%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 5.71 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY -76.24 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 12.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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