Zhongtong Bus Holding Co., Ltd. (000957) 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

Zhongtong Bus Holding Co., Ltd.

Why is Zhongtong Bus Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.20%

The company has been able to generate a Return on Capital Employed (avg) of 3.20% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.58% and Operating profit at 103.81% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.69% signifying low profitability per unit of shareholders funds

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

ROCE(HY) Highest at 9.79%
DEBT-EQUITY RATIO (HY) Lowest at -35.52 %
NET SALES(Q) Highest at CNY 1,686.26 MM

With ROE of 10.84%, it has a fair valuation with a 2.17 Price to Book Value

Over the past year, while the stock has generated a return of 0.26%, its profits have risen by 155.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhongtong Bus Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhongtong Bus Holding Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhongtong Bus Holding Co., Ltd.

-12.19%

0.51

37.15%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.58%

EBIT Growth (5y)

103.81%

EBIT to Interest (avg)

3.69

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.06

Tax Ratio

7.93%

Dividend Payout Ratio

19.02%

Pledged Shares

Institutional Holding

ROCE (avg)

3.20%

ROE (avg)

3.69%

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

2.17

EV to EBIT

21.94

EV to EBITDA

16.38

EV to Capital Employed

2.26

EV to Sales

0.93

PEG Ratio

0.13

Dividend Yield

0.72%

ROCE (Latest)

10.31%

ROE (Latest)

10.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

23What is working for the Company

ROCE(HY)

Highest at 9.79%

DEBT-EQUITY RATIO (HY)

Lowest at -35.52 %

NET SALES(Q)

Highest at CNY 1,686.26 MM

RAW MATERIAL COST(Y)

Fallen by -5.94% (YoY

CASH AND EQV(HY)

Highest at CNY 5,585.07 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.98%

PRE-TAX PROFIT(Q)

At CNY 85.74 MM has Grown at 88.16%

NET PROFIT(Q)

At CNY 76.51 MM has Grown at 80.52%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 960.91 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.94%

Here's what is working for Zhongtong Bus Holding Co., Ltd.

Net Sales

Highest at CNY 1,686.26 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -35.52 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At CNY 1,686.26 MM has Grown at 32.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 85.74 MM has Grown at 88.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 76.51 MM has Grown at 80.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 5,585.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.98%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.94% (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 Zhongtong Bus Holding Co., Ltd.

Operating Cash Flow

Lowest at CNY 960.91 MM and Fallen

In each year 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 4.94%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio