Wells Advanced Materials (Shanghai) Co., Ltd. () 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

Wells Advanced Materials (Shanghai) Co., Ltd.

Why is Wells Advanced Materials (Shanghai) Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.30% and Operating profit at 9.70% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3,113.82% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 68.08 %
INTEREST COVERAGE RATIO(Q) Lowest at 443.34
INTEREST(Q) Highest at CNY 4.59 MM

With ROE of 6.89%, it has a attractive valuation with a 0.72 Price to Book Value

Over the past year, while the stock has generated a return of 63.64%, its profits have risen by 861% ; the PEG ratio of the company is 0

Market Beating Performance

The stock has generated a return of 63.64% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Wells Advanced Materials (Shanghai) 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 Wells Advanced Materials (Shanghai) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wells Advanced Materials (Shanghai) Co., Ltd.

-100.0%

1.35

43.35%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.30%

EBIT Growth (5y)

9.70%

EBIT to Interest (avg)

3.14

Debt to EBITDA (avg)

8.10

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

178.08

Tax Ratio

15.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.35%

ROE (avg)

3,113.82%

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

0.82

EV to EBIT

16.41

EV to EBITDA

13.52

EV to Capital Employed

0.89

EV to Sales

0.73

PEG Ratio

0.01

Dividend Yield

0.52%

ROCE (Latest)

5.42%

ROE (Latest)

6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

24What is working for the Company

ROCE(HY)

Highest at 8.91%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -59.13% (YoY

NET SALES(Q)

Highest at CNY 820.79 MM

OPERATING PROFIT(Q)

Highest at CNY 64.71 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.88 %

PRE-TAX PROFIT(Q)

Highest at CNY 54.75 MM

NET PROFIT(Q)

Highest at CNY 48.04 MM

EPS(Q)

Highest at CNY 0.52

-4What is not working for the Company

INTEREST(9M)

At CNY 9.14 MM has Grown at 16.27%

DEBT-EQUITY RATIO (HY)

Highest at 84.28 %

Here's what is working for Wells Advanced Materials (Shanghai) Co., Ltd.

Net Sales

At CNY 820.79 MM has Grown at 57.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 820.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 64.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 7.88 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 54.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 54.75 MM has Grown at 92.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 48.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 48.04 MM has Grown at 96.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -59.13% (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 Wells Advanced Materials (Shanghai) Co., Ltd.

Interest

At CNY 9.14 MM has Grown at 16.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 84.28 %

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

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