Why is Zhongnongfa Seed Industry Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 10.00% and Operating profit at -12.49% over the last 5 years
2
Negative results in Mar 25
- NET PROFIT(HY) At CNY 42.28 MM has Grown at -39.82%
- OPERATING CASH FLOW(Y) Lowest at CNY 13.66 MM
- ROCE(HY) Lowest at 2.74%
3
With ROE of 4.61%, it has a very expensive valuation with a 3.39 Price to Book Value
- Over the past year, while the stock has generated a return of -5.60%, its profits have fallen by -51.7%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -5.60% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Trading & Distributors)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhongnongfa Seed Industry Group Co., Ltd. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zhongnongfa Seed Industry Group Co., Ltd.
-4.09%
0.34
29.20%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
10.00%
EBIT Growth (5y)
-12.49%
EBIT to Interest (avg)
5.15
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
2.64
Tax Ratio
20.18%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.68%
ROE (avg)
9.31%
Valuation Key Factors 
Factor
Value
P/E Ratio
74
Industry P/E
Price to Book Value
3.39
EV to EBIT
808.55
EV to EBITDA
47.40
EV to Capital Employed
4.67
EV to Sales
0.93
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.58%
ROE (Latest)
4.61%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
8What is working for the Company
NET SALES(Q)
At CNY 1,567.24 MM has Grown at 85.44%
PRE-TAX PROFIT(Q)
Highest at CNY 77.29 MM
NET PROFIT(Q)
Highest at CNY 51.06 MM
EPS(Q)
Highest at CNY 0.05
-13What is not working for the Company
NET PROFIT(HY)
At CNY 42.28 MM has Grown at -39.82%
OPERATING CASH FLOW(Y)
Lowest at CNY 13.66 MM
ROCE(HY)
Lowest at 2.74%
RAW MATERIAL COST(Y)
Grown by 27.17% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -44.33 %
Here's what is working for Zhongnongfa Seed Industry Group Co., Ltd.
Net Sales
At CNY 1,567.24 MM has Grown at 85.44%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 77.29 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 51.06 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Here's what is not working for Zhongnongfa Seed Industry Group Co., Ltd.
Operating Cash Flow
Lowest at CNY 13.66 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -44.33 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 27.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






