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Zhengwei Group Holdings Co (HKSE:02147) Net-Net Working Capital : HK$0.24 (As of Jun. 2024)


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What is Zhengwei Group Holdings Co Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Zhengwei Group Holdings Co's Net-Net Working Capital for the quarter that ended in Jun. 2024 was HK$0.24.

The industry rank for Zhengwei Group Holdings Co's Net-Net Working Capital or its related term are showing as below:

HKSE:02147's Price-to-Net-Net-Working-Capital is ranked better than
99.17% of 600 companies
in the Consumer Packaged Goods industry
Industry Median: 7 vs HKSE:02147: 0.16

Zhengwei Group Holdings Co Net-Net Working Capital Historical Data

The historical data trend for Zhengwei Group Holdings Co's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zhengwei Group Holdings Co Net-Net Working Capital Chart

Zhengwei Group Holdings Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
-0.04 0.06 0.11 0.18 0.32

Zhengwei Group Holdings Co Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only 0.14 0.18 0.40 0.32 0.24

Competitive Comparison of Zhengwei Group Holdings Co's Net-Net Working Capital

For the Packaged Foods subindustry, Zhengwei Group Holdings Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Zhengwei Group Holdings Co's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Zhengwei Group Holdings Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Zhengwei Group Holdings Co's Price-to-Net-Net-Working-Capital falls into.


Zhengwei Group Holdings Co Net-Net Working Capital Calculation

Zhengwei Group Holdings Co's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(217.865+0.75 * 100.956+0.5 * 107.488-93.696
-0-0)/800.000
=0.32

Zhengwei Group Holdings Co's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2024 is calculated as

Net-Net Working Capital(Q: Jun. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(203.602+0.75 * 63.605+0.5 * 85.133-62.652
-0-0)/960.000
=0.24

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Zhengwei Group Holdings Co  (HKSE:02147) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Zhengwei Group Holdings Co Net-Net Working Capital Related Terms

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Zhengwei Group Holdings Co Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Zhengwei Group Holdings Co Ltd (HKSE:02147) » Definitions » Net-Net Working Capital
Comparable Companies
HKSE:01340 HKSE:08241 HKSE:00841 HKSE:00932 HKSE:00834 HKSE:00948 HKSE:08362 HKSE:01695 HKSE:08179 XSWX:NESN XPAR:BN KHC GIS SHSE:603288 K NSE:NESTLEIND SHSE:600887 SZSE:300999 MKC TSE:2802
Traded in Other Exchanges
N/A
Address
487 Yuhu Road, Xiaolan Economic Development and Technology Zone, Nanchang, CHN
Website
https://www.zhengwei100.com
Zhengwei Group Holdings Co Ltd produces dry food and snacks, and secondarily trades related products. It produces and sells a variety of snacks (including ready-to-eat vegetarian snacks and meat snacks), such as crispy bamboo shoots and roast necks; and packaged dry goods such as mushrooms, dried aquatic products, seaweed, grains, and seasonings in China. The majority of revenue is derived from the Snacks segment. It has two operating segments Manufacturing & trading, out of which the majority is from the manufacturing segment. Geographically, the majority is from the PRC.
Executives
Lin Qiu Yun 2101 Beneficial owner
Yang Shengyao 2201 Interest of corporation controlled by you
Shengyao Investment Group Limited 2101 Beneficial owner
Nan Chang Xian Wen Hua Lv You Tou Zi You Xian Gong Si 2101 Beneficial owner
Nan Chang Xian Ke Ji He Gong Ye Xun Xi Hua Ju 2201 Interest of corporation controlled by you
Lin Qiuyun 2201 Interest of corporation controlled by you
Trendy Peak International Limited 2101 Beneficial owner
Prosperous Season Group Limited 2101 Beneficial owner
Best Talent Venture Holdings Limited 2101 Beneficial owner
Chang Nan Financial Control Limited 2101 Beneficial owner
Pluto Universal Holdings Limited 2101 Beneficial owner
Lei Junfeng 2201 Interest of corporation controlled by you
Li Hui 2201 Interest of corporation controlled by you
Nan Chang Shi Tong Li Qi Ye Guan Li Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Nan Chang Xian Chang Nan Jin Kong Ji Jin Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you

Zhengwei Group Holdings Co Headlines

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