Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (002130) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

Why is Shenzhen Woer Heat-Shrinkable Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.23% and Operating profit at 22.58% over the last 5 years

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 980.58 MM
DEBT-EQUITY RATIO (HY) Lowest at 17.17 %
RAW MATERIAL COST(Y) Fallen by -1.7% (YoY)

With ROE of 18.21%, it has a fair valuation with a 5.62 Price to Book Value

Over the past year, while the stock has generated a return of 38.26%, its profits have risen by 21% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0.5

Consistent Returns over the last 3 years

Along with generating 38.26% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Woer Heat-Shrinkable Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Shenzhen Woer Heat-Shrinkable Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

35.15%

1.96

59.39%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.23%

EBIT Growth (5y)

22.58%

EBIT to Interest (avg)

11.06

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.86

Tax Ratio

14.22%

Dividend Payout Ratio

20.09%

Pledged Shares

Institutional Holding

ROCE (avg)

14.62%

ROE (avg)

15.71%

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

5.62

EV to EBIT

28.30

EV to EBITDA

22.72

EV to Capital Employed

4.75

EV to Sales

4.48

PEG Ratio

1.47

Dividend Yield

0.52%

ROCE (Latest)

16.79%

ROE (Latest)

18.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 980.58 MM

DEBT-EQUITY RATIO (HY)

Lowest at 17.17 %

RAW MATERIAL COST(Y)

Fallen by -1.7% (YoY

CASH AND EQV(HY)

Highest at CNY 2,469.63 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.34%

NET SALES(Q)

At CNY 1,748.11 MM has Grown at 26.8%

PRE-TAX PROFIT(Q)

Highest at CNY 310.4 MM

NET PROFIT(Q)

Highest at CNY 250.39 MM

EPS(Q)

Highest at CNY 0.2

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

Debt-Equity Ratio

Lowest at 17.17 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at CNY 980.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,748.11 MM has Grown at 26.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 310.4 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 250.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,469.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.7% (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