New East New Materials Co., Ltd. (603110) 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

New East New Materials Co., Ltd.

Why is New East New Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.67%

The company has been able to generate a Return on Capital Employed (avg) of 3.67% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.68% and Operating profit at -31.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.68% and Operating profit at -31.75% over the last 5 years

Negative results in Jun 26

NET PROFIT(9M) At CNY 0.98 MM has Grown at -49.04%
INTEREST(9M) At CNY 0.04 MM has Grown at 207.48%
OPERATING CASH FLOW(Y) Lowest at CNY 17.75 MM

With ROE of 0.13%, it has a very expensive valuation with a 6.75 Price to Book Value

Over the past year, while the stock has generated a return of 53.20%, its profits have fallen by -93.6%

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 Industrial Products)

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

Is New East New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

New East New Materials Co., Ltd.

53.2%

2.16

54.53%

China Shanghai Composite

3.23%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.68%

EBIT Growth (5y)

-31.75%

EBIT to Interest (avg)

6.77

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.54

Tax Ratio

87.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.60%

ROE (avg)

5.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

4701

Industry P/E

Price to Book Value

6.75

EV to EBIT

564.71

EV to EBITDA

201.77

EV to Capital Employed

8.60

EV to Sales

11.09

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

1.52%

ROE (Latest)

0.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

7What is working for the Company

NET PROFIT(HY)

Higher at CNY 10.73 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.92 times

-18What is not working for the Company

NET PROFIT(9M)

At CNY 0.98 MM has Grown at -49.04%

INTEREST(9M)

At CNY 0.04 MM has Grown at 207.48%

OPERATING CASH FLOW(Y)

Lowest at CNY 17.75 MM

PRE-TAX PROFIT(Q)

At CNY 1.11 MM has Fallen at -52.42%

RAW MATERIAL COST(Y)

Grown by 12.97% (YoY

CASH AND EQV(HY)

Lowest at CNY 398.52 MM

DEBT-EQUITY RATIO (HY)

Highest at -19.06 %

NET SALES(Q)

Lowest at CNY 87.49 MM

Here's what is working for New East New Materials Co., Ltd.

Net Profit

At CNY 10.73 MM has Grown at 1,540.15%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 10.73 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for New East New Materials Co., Ltd.

Interest

At CNY 0.04 MM has Grown at 207.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 87.49 MM has Fallen at -14.35%

over average net sales of the previous four periods of CNY 102.14 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 1.11 MM has Fallen at -52.42%

over average net sales of the previous four periods of CNY 2.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 17.75 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 87.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 398.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -19.06 %

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 12.97% (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

Footer loading