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

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 15.99% and Operating profit at 19.96% over the last 5 years

With a growth in Net Sales of 24.9%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 991.82 MM
ROCE(HY) Highest at 17.62%
DEBTORS TURNOVER RATIO(HY) Highest at 2.47 times

With ROE of 18.21%, it has a fair valuation with a 7.50 Price to Book Value

Over the past year, while the stock has generated a return of 8.08%, its profits have risen by 21% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 0.4

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.

10.75%

1.65

51.87%

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)

15.99%

EBIT Growth (5y)

19.96%

EBIT to Interest (avg)

11.06

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.87

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

7.50

EV to EBIT

37.40

EV to EBITDA

30.03

EV to Capital Employed

6.28

EV to Sales

5.91

PEG Ratio

1.96

Dividend Yield

0.39%

ROCE (Latest)

16.79%

ROE (Latest)

18.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 991.82 MM

ROCE(HY)

Highest at 17.62%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.47 times

RAW MATERIAL COST(Y)

Fallen by -2.74% (YoY

NET SALES(Q)

At CNY 2,136.9 MM has Grown at 24.9%

-3What is not working for the Company

INTEREST(HY)

At CNY 28.74 MM has Grown at 9.54%

DEBT-EQUITY RATIO (HY)

Highest at 26.16 %

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

Debtors Turnover Ratio

Highest at 2.47 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at CNY 991.82 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 2,136.9 MM has Grown at 24.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -2.74% (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 Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

Interest

At CNY 28.74 MM has Grown at 9.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 26.16 %

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