ZX, Inc. () 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

ZX, Inc.

Why is ZX, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -21.27% and Operating profit at -19.57% over the last 5 years

Positive results in Jun 25

PRE-TAX PROFIT(Q) At HKD 320.98 MM has Grown at 234.1%
NET PROFIT(Q) At HKD 226.2 MM has Grown at 222.92%
ROCE(HY) Highest at 38%

With ROE of 20.42%, it has a Expensive valuation with a 2.35 Price to Book Value

Over the past year, while the stock has generated a return of 100.54%, its profits have risen by 5734.3%

Market Beating Performance

The stock has generated a return of 100.54% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 25.20%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ZX, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is ZX, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ZX, Inc.

100.54%

-0.72

52.23%

Hang Seng Hong Kong

25.2%

1.26

20.05%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-21.27%

EBIT Growth (5y)

-19.57%

EBIT to Interest (avg)

5.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.13

Sales to Capital Employed (avg)

308.37

Tax Ratio

82.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

28.24%

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

2.35

EV to EBIT

8.45

EV to EBITDA

7.71

EV to Capital Employed

15.71

EV to Sales

1.07

PEG Ratio

Dividend Yield

ROCE (Latest)

185.84%

ROE (Latest)

20.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At HKD 320.98 MM has Grown at 234.1%

NET PROFIT(Q)

At HKD 226.2 MM has Grown at 222.92%

ROCE(HY)

Highest at 38%

OPERATING PROFIT MARGIN(Q)

Highest at 13.7 %

EPS(Q)

Highest at HKD 1.21

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 10.43% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -89.47 %

NET SALES(Q)

Lowest at HKD 2,153.22 MM

Here's what is working for ZX, Inc.

Pre-Tax Profit

At HKD 320.98 MM has Grown at 234.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 226.2 MM has Grown at 222.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Profit Margin

Highest at 13.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at HKD 1.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Depreciation

At HKD 32.45 MM has Grown at 28.27%

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 ZX, Inc.

Net Sales

Lowest at HKD 2,153.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -38.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Debt-Equity Ratio

Highest at -89.47 %

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

Raw Material Cost

Grown by 10.43% (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