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)

Poor long term growth as Net Sales has grown by an annual rate of 8.20% and Operating profit at -4.56% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

NET PROFIT(Q) At CNY -10.94 MM has Fallen at -57.12%
DEBT-EQUITY RATIO (HY) Highest at -8.09 %
INVENTORY TURNOVER RATIO(HY) Lowest at 15.88 times

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 -15.01%, its profits have fallen by -470.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.01% 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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhonglu Co., Ltd.

-25.78%

-1.29

30.91%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.20%

EBIT Growth (5y)

-4.56%

EBIT to Interest (avg)

-3.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.55

Tax Ratio

1.60%

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

4.72

EV to EBIT

-70.11

EV to EBITDA

-466.75

EV to Capital Employed

5.09

EV to Sales

2.57

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

-7.26%

ROE (Latest)

-5.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (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

6What is working for the Company

NET PROFIT(HY)

Higher at CNY -14.31 MM

RAW MATERIAL COST(Y)

Fallen by -3.14% (YoY

-24What is not working for the Company

NET PROFIT(Q)

At CNY -10.94 MM has Fallen at -57.12%

DEBT-EQUITY RATIO (HY)

Highest at -8.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.88 times

INTEREST(Q)

Highest at CNY 1.55 MM

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

Raw Material Cost

Fallen by -3.14% (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 Profit

At CNY -10.94 MM has Fallen at -57.12%

over average net sales of the previous four periods of CNY -6.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.55 MM has Grown at 220.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.55 MM

in the last five periods and Increased by 220.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -8.09 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 15.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio