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. ?

With a growth in Net Profit of NAN%, the company declared Outstanding results in Sep 25

NET SALES(Q) Highest at CNY 623.61 MM
PRE-TAX PROFIT(Q) Highest at CNY 35.13 MM
RAW MATERIAL COST(Y) Fallen by -78.59% (YoY)

With ROE of 4.16%, it has a attractive valuation with a 0.61 Price to Book Value

Over the past year, while the stock has generated a return of 35.30%, its profits have fallen by -86%

Market Beating Performance

The stock has generated a return of 35.30% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.45%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Wells Advanced Materials (Shanghai) Co., Ltd.

37.88%

0.40

42.86%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.90%

EBIT Growth (5y)

-177.72%

EBIT to Interest (avg)

10.58

Debt to EBITDA (avg)

7.22

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

346.69

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3,752.76%

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

0.61

EV to EBIT

36.20

EV to EBITDA

21.47

EV to Capital Employed

0.77

EV to Sales

0.77

PEG Ratio

Dividend Yield

ROCE (Latest)

2.14%

ROE (Latest)

4.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

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

34What is working for the Company

NET SALES(Q)

Highest at CNY 623.61 MM

PRE-TAX PROFIT(Q)

Highest at CNY 35.13 MM

RAW MATERIAL COST(Y)

Fallen by -78.59% (YoY

NET PROFIT(Q)

Highest at CNY 27.35 MM

EPS(Q)

Highest at CNY 0.29

-8What is not working for the Company

INTEREST(HY)

At CNY 7.76 MM has Grown at 230.64%

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

Pre-Tax Profit

At CNY 35.13 MM has Grown at 1,091.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 27.35 MM has Grown at 3,103.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 623.61 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 623.61 MM has Grown at 49.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 35.13 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 27.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -78.59% (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 7.76 MM has Grown at 230.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)