Zoneco Group Co., Ltd. (002069) 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

Zoneco Group Co., Ltd.

Why is Zoneco Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -8.80% and Operating profit at -28.66% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 60.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.80% and Operating profit at -28.66% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY -18.35 MM has Grown at -1,049.54%
OPERATING CASH FLOW(Y) Lowest at CNY 6.29 MM
NET SALES(Q) At CNY 317.36 MM has Fallen at -22.61%

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 -13.98%, its profits have fallen by -8.9%

Below par performance in long term as well as near term

Along with generating -13.98% 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 Other Agricultural Products)

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

Is Zoneco Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zoneco Group Co., Ltd.

-19.31%

0.47

40.12%

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)

-8.80%

EBIT Growth (5y)

-28.66%

EBIT to Interest (avg)

0.58

Debt to EBITDA (avg)

24.98

Net Debt to Equity (avg)

27.01

Sales to Capital Employed (avg)

0.77

Tax Ratio

43.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.65%

ROE (avg)

60.67%

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

80.69

EV to EBIT

613.43

EV to EBITDA

58.43

EV to Capital Employed

2.55

EV to Sales

3.04

PEG Ratio

Dividend Yield

ROCE (Latest)

0.42%

ROE (Latest)

-59.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

13What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 2.99 MM has Grown at 248.13%

NET PROFIT(Q)

At CNY 2.56 MM has Grown at 263.86%

RAW MATERIAL COST(Y)

Fallen by -49.95% (YoY

-19What is not working for the Company

NET PROFIT(9M)

At CNY -18.35 MM has Grown at -1,049.54%

OPERATING CASH FLOW(Y)

Lowest at CNY 6.29 MM

NET SALES(Q)

At CNY 317.36 MM has Fallen at -22.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.28 times

Here's what is working for Zoneco Group Co., Ltd.

Pre-Tax Profit

At CNY 2.99 MM has Grown at 248.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.56 MM has Grown at 263.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -49.95% (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 Zoneco Group Co., Ltd.

Net Sales

At CNY 317.36 MM has Fallen at -22.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 6.29 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 1.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio