Zhongyan Technology Co., Ltd. (003001) 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

Zhongyan Technology Co., Ltd.

Why is Zhongyan Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.38%

The company has been able to generate a Return on Capital Employed (avg) of 9.38% 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 -14.55% and Operating profit at -157.66% over the last 5 years

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

NET PROFIT(HY) At CNY -2.87 MM has Grown at -107.91%
INTEREST(HY) At CNY 0.27 MM has Grown at 112.5%
NET SALES(Q) At CNY 118.97 MM has Fallen at -22.75%

With ROE of 0.14%, it has a very expensive valuation with a 1.50 Price to Book Value

Over the past year, while the stock has generated a return of -57.92%, its profits have fallen by -97.5%
At the current price, the company has a high dividend yield of 2

Below par performance in long term as well as near term

Along with generating -57.92% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Construction)

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

Is Zhongyan Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhongyan Technology Co., Ltd.

-60.63%

0.25

50.79%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.55%

EBIT Growth (5y)

-157.66%

EBIT to Interest (avg)

26.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.58

Tax Ratio

12.76%

Dividend Payout Ratio

95.61%

Pledged Shares

Institutional Holding

ROCE (avg)

9.38%

ROE (avg)

4.69%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1038

Industry P/E

Price to Book Value

1.50

EV to EBIT

-163.11

EV to EBITDA

212.78

EV to Capital Employed

1.88

EV to Sales

2.24

PEG Ratio

Dividend Yield

1.96%

ROCE (Latest)

-1.15%

ROE (Latest)

0.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 98.61 MM

PRE-TAX PROFIT(Q)

At CNY 5.3 MM has Grown at 152.34%

DEBT-EQUITY RATIO (HY)

Lowest at -42.68 %

-27What is not working for the Company

NET PROFIT(HY)

At CNY -2.87 MM has Grown at -107.91%

INTEREST(HY)

At CNY 0.27 MM has Grown at 112.5%

NET SALES(Q)

At CNY 118.97 MM has Fallen at -22.75%

ROCE(HY)

Lowest at 0.84%

RAW MATERIAL COST(Y)

Grown by 20.46% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.6 times

Here's what is working for Zhongyan Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 98.61 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 5.3 MM has Grown at 152.34%

over average net sales of the previous four periods of CNY 2.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at -42.68 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Zhongyan Technology Co., Ltd.

Net Profit

At CNY -2.87 MM has Grown at -107.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.27 MM has Grown at 112.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 118.97 MM has Fallen at -22.75%

over average net sales of the previous four periods of CNY 154.01 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.6 times

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 20.46% (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