Zoje Resources Investment Co., Ltd. (002021) 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

Zoje Resources Investment Co., Ltd.

Why is Zoje Resources Investment Co., Ltd. ?

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 11.90% and Operating profit at 18.01% 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 30.43% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.90% and Operating profit at 18.01% over the last 5 years

With a fall in Net Sales of -12.44%, the company declared Very Negative results in Mar 25

NET PROFIT(HY) At CNY 16.34 MM has Grown at -97.36%
OPERATING CASH FLOW(Y) Lowest at CNY -203.07 MM
CASH AND EQV(HY) Lowest at CNY 190.25 MM

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 -3.16%, its profits have fallen by -97%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.16% 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 Industrial Manufacturing)

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

Is Zoje Resources Investment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zoje Resources Investment Co., Ltd.

-4.41%

0.74

45.13%

China Shanghai Composite

14.77%

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)

11.90%

EBIT Growth (5y)

18.01%

EBIT to Interest (avg)

1.78

Debt to EBITDA (avg)

14.51

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.66

Tax Ratio

12.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.70%

ROE (avg)

30.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

176

Industry P/E

Price to Book Value

5.21

EV to EBIT

238.14

EV to EBITDA

84.30

EV to Capital Employed

5.32

EV to Sales

3.76

PEG Ratio

Dividend Yield

ROCE (Latest)

2.23%

ROE (Latest)

2.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -34.97% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 4.46 %

PRE-TAX PROFIT(Q)

Highest at CNY 12.2 MM

NET PROFIT(Q)

At CNY 11.44 MM has Grown at 94.84%

EPS(Q)

Highest at CNY 0.01

-12What is not working for the Company

NET PROFIT(HY)

At CNY 16.34 MM has Grown at -97.36%

OPERATING CASH FLOW(Y)

Lowest at CNY -203.07 MM

CASH AND EQV(HY)

Lowest at CNY 190.25 MM

Here's what is working for Zoje Resources Investment Co., Ltd.

Operating Profit Margin

Highest at 4.46 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 12.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 12.2 MM has Grown at 110.53%

over average net sales of the previous four periods of CNY 5.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 11.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 11.44 MM has Grown at 94.84%

over average net sales of the previous four periods of CNY 5.87 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -34.97% (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 Zoje Resources Investment Co., Ltd.

Operating Cash Flow

Lowest at CNY -203.07 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)

Cash and Eqv

Lowest at CNY 190.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents