ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Zonqing Environmental Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 9.47% and Operating profit at 5.75% over the last 5 years
- The company is Net-Debt Free
2
Negative results in Jun 26
- ROCE(HY) Lowest at -3.3%
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.45 times
- INTEREST COVERAGE RATIO(Q) Lowest at 110.65
3
With ROE of 3.75%, it has a Very Expensive valuation with a 0.20 Price to Book Value
- Over the past year, while the stock has generated a return of -95.82%, its profits have fallen by -41.9%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -95.82% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods
Real-Time Research ReportHow 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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zonqing Environmental Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zonqing Environmental Ltd.
-95.76%
-1.02
96.35%
Hang Seng Hong Kong
-5.07%
-0.26
18.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.47%
EBIT Growth (5y)
5.75%
EBIT to Interest (avg)
1.54
Debt to EBITDA (avg)
9.04
Net Debt to Equity (avg)
1.13
Sales to Capital Employed (avg)
1.04
Tax Ratio
42.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.67%
ROE (avg)
10.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.20
EV to EBIT
3.90
EV to EBITDA
3.47
EV to Capital Employed
0.52
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.41%
ROE (Latest)
3.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 763.73 MM
-21What is not working for the Company
ROCE(HY)
Lowest at -3.3%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.45 times
INTEREST COVERAGE RATIO(Q)
Lowest at 110.65
RAW MATERIAL COST(Y)
Grown by 35.2% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.78 times
NET SALES(Q)
Lowest at HKD 593.08 MM
OPERATING PROFIT(Q)
Lowest at HKD 29.14 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.91 %
PRE-TAX PROFIT(Q)
Lowest at HKD -4.45 MM
NET PROFIT(Q)
Lowest at HKD -17.51 MM
EPS(Q)
Lowest at HKD -0.02
Here's what is working for Zonqing Environmental Ltd.
Operating Cash Flow
Highest at HKD 763.73 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Here's what is not working for Zonqing Environmental Ltd.
Interest Coverage Ratio
Lowest at 110.65
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At HKD -4.45 MM has Fallen at -109.82%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (HKD MM)
Net Profit
At HKD -17.51 MM has Fallen at -155.59%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (HKD MM)
Debtors Turnover Ratio
Lowest at 0.45 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at HKD 593.08 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (HKD MM)
Net Sales
Fallen at -27.53%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (HKD MM)
Operating Profit
Lowest at HKD 29.14 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (HKD MM)
Operating Profit Margin
Lowest at 4.91 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at HKD -4.45 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (HKD MM)
Net Profit
Lowest at HKD -17.51 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
EPS
Lowest at HKD -0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (HKD)
Inventory Turnover Ratio
Lowest at 8.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 35.2% (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
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