ScoreWhy is Shenzhen Wote Advanced Materials Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.91%
- The company has been able to generate a Return on Capital Employed (avg) of 2.91% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 10.54% and Operating profit at -8.89% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 3.66% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.54% and Operating profit at -8.89% over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 241.81 MM
- PRE-TAX PROFIT(Q) At CNY 9.54 MM has Grown at 470.39%
- ROCE(HY) Highest at 3.92%
5
With ROE of 4.02%, it has a expensive valuation with a 2.49 Price to Book Value
- Over the past year, while the stock has generated a return of 81.76%, its profits have risen by 107.1% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0.3
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Shenzhen Wote Advanced Materials Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shenzhen Wote Advanced Materials Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Wote Advanced Materials Co., Ltd.
79.3%
3.13
41.48%
China Shanghai Composite
23.91%
1.73
13.79%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.54%
EBIT Growth (5y)
-8.89%
EBIT to Interest (avg)
2.69
Debt to EBITDA (avg)
6.29
Net Debt to Equity (avg)
0.63
Sales to Capital Employed (avg)
0.57
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
30.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.91%
ROE (avg)
3.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
2.49
EV to EBIT
100.24
EV to EBITDA
37.83
EV to Capital Employed
1.98
EV to Sales
2.64
PEG Ratio
0.58
Dividend Yield
0.28%
ROCE (Latest)
1.97%
ROE (Latest)
4.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 241.81 MM
PRE-TAX PROFIT(Q)
At CNY 9.54 MM has Grown at 470.39%
ROCE(HY)
Highest at 3.92%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.75 times
NET PROFIT(Q)
At CNY 12.73 MM has Grown at 110.66%
RAW MATERIAL COST(Y)
Fallen by -26.1% (YoY
CASH AND EQV(HY)
Highest at CNY 1,120.91 MM
-10What is not working for the Company
INTEREST(HY)
At CNY 24.46 MM has Grown at 21.37%
INTEREST COVERAGE RATIO(Q)
Lowest at 148.57
OPERATING PROFIT MARGIN(Q)
Lowest at 2.75 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.57 times
OPERATING PROFIT(Q)
Lowest at CNY 12.65 MM
Here's what is working for Shenzhen Wote Advanced Materials Co., Ltd.
Pre-Tax Profit
At CNY 9.54 MM has Grown at 470.39%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Operating Cash Flow
Highest at CNY 241.81 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
At CNY 12.73 MM has Grown at 110.66%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 2.75 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Cash and Eqv
Highest at CNY 1,120.91 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -26.1% (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 Wote Advanced Materials Co., Ltd.
Interest
At CNY 24.46 MM has Grown at 21.37%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 148.57
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 2.75 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Operating Profit
Lowest at CNY 12.65 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 3.57 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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