Zhongyin Babi Food Co., Ltd. (605338) 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

Zhongyin Babi Food Co., Ltd.

Why is Zhongyin Babi Food Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.06% and Operating profit at 10.17% over the last 5 years

The company declared negative results in Mar'25 after positive results in Dec'24

INTEREST(HY) At CNY 1.02 MM has Grown at 20.66%
INTEREST COVERAGE RATIO(Q) Lowest at 7,601.45
DEBTORS TURNOVER RATIO(HY) Lowest at 14.77%

With ROE of 11.03%, it has a attractive valuation with a 2.54 Price to Book Value

Over the past year, while the stock has generated a return of 46.33%, its profits have risen by 15.1% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 3.6

Market Beating Performance

The stock has generated a return of 46.33% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhongyin Babi Food Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Zhongyin Babi Food Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhongyin Babi Food Co., Ltd.

48.84%

1.93

44.81%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.06%

EBIT Growth (5y)

10.17%

EBIT to Interest (avg)

87.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.73

Tax Ratio

23.20%

Dividend Payout Ratio

71.43%

Pledged Shares

Institutional Holding

ROCE (avg)

26.36%

ROE (avg)

9.34%

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

2.54

EV to EBIT

19.18

EV to EBITDA

14.62

EV to Capital Employed

3.54

EV to Sales

2.72

PEG Ratio

1.53

Dividend Yield

3.56%

ROCE (Latest)

18.48%

ROE (Latest)

11.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.56% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 18.79%

-11What is not working for the Company

INTEREST(HY)

At CNY 1.02 MM has Grown at 20.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 7,601.45

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.77%

OPERATING PROFIT(Q)

Lowest at CNY 44.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.3 %

PRE-TAX PROFIT(Q)

Lowest at CNY 46.29 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is working for Zhongyin Babi Food Co., Ltd.

Inventory Turnover Ratio

Highest at 18.79%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2.56% (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 Zhongyin Babi Food Co., Ltd.

Interest

At CNY 1.02 MM has Grown at 20.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 7,601.45

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 CNY 44.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 46.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 14.77%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio