Wafangdian Bearing Co., Ltd. (200706) 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

Wafangdian Bearing Co., Ltd.

Why is Wafangdian Bearing Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.03% and Operating profit at -1.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of 3.03% and Operating profit at -1.56% over the last 5 years

Flat results in Mar 25

ROCE(HY) Lowest at -30.83%
DEBT-EQUITY RATIO (HY) Highest at 323.62 %
CASH AND EQV(HY) Lowest at HKD 394.99 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 1.80%, its profits have risen by 22.8%

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 Industrial Manufacturing)

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

Is Wafangdian Bearing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wafangdian Bearing Co., Ltd.

-13.47%

2.58

35.92%

China Shanghai Composite

15.19%

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)

3.03%

EBIT Growth (5y)

-1.56%

EBIT to Interest (avg)

-5.39

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

3.24

Sales to Capital Employed (avg)

1.65

Tax Ratio

0.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.72

EV to EBIT

-8.09

EV to EBITDA

-23.13

EV to Capital Employed

1.25

EV to Sales

0.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.44%

ROE (Latest)

-34.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.29% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3%

NET SALES(Q)

At HKD 711.2 MM has Grown at 24.85%

PRE-TAX PROFIT(Q)

At HKD -8.31 MM has Grown at 70.13%

NET PROFIT(Q)

At HKD -8.31 MM has Grown at 70.13%

-5What is not working for the Company

ROCE(HY)

Lowest at -30.83%

DEBT-EQUITY RATIO (HY)

Highest at 323.62 %

CASH AND EQV(HY)

Lowest at HKD 394.99 MM

Here's what is working for Wafangdian Bearing Co., Ltd.

Net Sales

Highest at HKD 711.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Net Sales

At HKD 711.2 MM has Grown at 24.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Pre-Tax Profit

At HKD -8.31 MM has Grown at 70.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -8.31 MM has Grown at 70.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Inventory Turnover Ratio

Highest at 3%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.29% (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 Wafangdian Bearing Co., Ltd.

Debt-Equity Ratio

Highest at 323.62 % and Grown

In each half year 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

Cash and Eqv

Lowest at HKD 394.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents