ZO Future Group (2309) 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

Paradise Entertainment Ltd.

Huanxi Media Group Ltd.

Cathay Media & Education Group, Inc.

China Star Entertainment Ltd.

Linmon Media Ltd.

Star CM Holdings Ltd.

Viva Goods Co. Ltd.

Mei Ah Entertainment Group Ltd.

Digital Domain Holdings Ltd.

Haichang Ocean Park Holdings Ltd.

ZO Future Group

Why is ZO Future Group ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Operating profit has grown by an annual rate -15.84% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Dec 24

OPERATING CASH FLOW(Y) Lowest at HKD -775.43 MM
ROCE(HY) Lowest at -61.76%
DEBT-EQUITY RATIO (HY) Highest at 226.34 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.31%, its profits have fallen by -437.7%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 26.67% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.31% returns

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 Media & Entertainment)

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

Is ZO Future Group for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ZO Future Group

-27.78%

-0.59

66.35%

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)

14.27%

EBIT Growth (5y)

-15.84%

EBIT to Interest (avg)

-10.84

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.00

Sales to Capital Employed (avg)

0.26

Tax Ratio

0.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.13

EV to EBIT

-4.54

EV to EBITDA

-6.15

EV to Capital Employed

2.05

EV to Sales

7.37

PEG Ratio

Dividend Yield

ROCE (Latest)

-45.03%

ROE (Latest)

-119.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for ZO Future Group

Net Sales

Highest at HKD 172.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Cash and Eqv

Highest at HKD 166.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at HKD 72.93 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 72.93 MM has Grown at 30.22%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for ZO Future Group

Pre-Tax Profit

At HKD -223.57 MM has Fallen at -259.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -139.57 MM has Fallen at -226.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Debt-Equity Ratio

Highest at 226.34 % and Grown

In each half year 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

Operating Cash Flow

Lowest at HKD -775.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Interest

Highest at HKD 47.49 MM

in the last five periods and Increased by 225.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD -183.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Pre-Tax Profit

Lowest at HKD -223.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -139.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Raw Material Cost

Grown by 29.79% (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