Zhongsheng Group Holdings Ltd. (881) 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

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Zhongsheng Group Holdings Ltd.

Why is Zhongsheng Group Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -48.17% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 210.98
OPERATING CASH FLOW(Y) Lowest at HKD 8,759.68 MM
ROCE(HY) Lowest at 6.95%

With ROE of 5.36%, it has a Very Expensive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -33.23%, its profits have fallen by -25.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.23% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Retailing)

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

Is Zhongsheng Group Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhongsheng Group Holdings Ltd.

-32.58%

-0.43

46.82%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.93%

EBIT Growth (5y)

-48.17%

EBIT to Interest (avg)

3.99

Debt to EBITDA (avg)

3.11

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

2.35

Tax Ratio

25.17%

Dividend Payout Ratio

46.28%

Pledged Shares

Institutional Holding

ROCE (avg)

8.77%

ROE (avg)

14.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.73

EV to EBIT

315.18

EV to EBITDA

20.24

EV to Capital Employed

0.82

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

0.26%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Zhongsheng Group Holdings Ltd.

Dividend Payout Ratio

Highest at 90.68% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Highest at HKD 24,613.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhongsheng Group Holdings Ltd.

Interest Coverage Ratio

Lowest at 210.98 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at HKD 1,786.69 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 8,759.68 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit Margin

Lowest at 1.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 58.48 %

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 9.06%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 12.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.26% (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