Qingdao Weflo Valve Co., Ltd. (002871) 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

Qingdao Weflo Valve Co., Ltd.

Why is Qingdao Weflo Valve Co., Ltd. ?

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 4,452.02
DEBTORS TURNOVER RATIO(HY) Lowest at 4.22 times
INTEREST(Q) Highest at CNY 1.1 MM

With ROE of 15.80%, it has a very attractive valuation with a 5.10 Price to Book Value

Over the past year, while the stock has generated a return of 55.59%, its profits have risen by 11.4% ; the PEG ratio of the company is 2.8
At the current price, the company has a high dividend yield of 1.4

Market Beating performance in long term as well as near term

Along with generating 55.59% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Qingdao Weflo Valve Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Qingdao Weflo Valve Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Qingdao Weflo Valve Co., Ltd.

61.75%

2.14

47.36%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.47%

EBIT Growth (5y)

23.20%

EBIT to Interest (avg)

88.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.60

Tax Ratio

9.81%

Dividend Payout Ratio

65.57%

Pledged Shares

Institutional Holding

ROCE (avg)

22.59%

ROE (avg)

13.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.10

EV to EBIT

30.35

EV to EBITDA

25.31

EV to Capital Employed

7.11

EV to Sales

6.64

PEG Ratio

2.84

Dividend Yield

1.38%

ROCE (Latest)

23.42%

ROE (Latest)

15.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.11% (YoY

CASH AND EQV(HY)

Highest at CNY 1,173.8 MM

NET SALES(Q)

At CNY 185.99 MM has Grown at 22.07%

OPERATING PROFIT(Q)

Highest at CNY 49.11 MM

PRE-TAX PROFIT(Q)

Highest at CNY 49 MM

NET PROFIT(Q)

Highest at CNY 43.49 MM

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,452.02

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.22 times

INTEREST(Q)

Highest at CNY 1.1 MM

Here's what is working for Qingdao Weflo Valve Co., Ltd.

Net Sales

At CNY 185.99 MM has Grown at 22.07%

over average net sales of the previous four periods of CNY 152.37 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 49.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 43.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,173.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.11% (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 Qingdao Weflo Valve Co., Ltd.

Interest Coverage Ratio

Lowest at 4,452.02 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 1.1 MM has Grown at 32.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.1 MM

in the last five periods and Increased by 32.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio