ScoreWhy is Wells Advanced Materials (Shanghai) Co., Ltd. ?
1
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
2
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
3
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 62.55%, its profits have risen by 861% ; the PEG ratio of the company is 0
4
Market Beating Performance
- The stock has generated a return of 62.55% in the last 1 year, much higher than market (China Shanghai Composite) returns of 19.22%
Real-Time Research ReportHow much should you hold?
- 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.
62.55%
1.30
42.86%
China Shanghai Composite
19.22%
1.40
13.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.30%
EBIT Growth (5y)
9.70%
EBIT to Interest (avg)
10.58
Debt to EBITDA (avg)
7.22
Net Debt to Equity (avg)
0.54
Sales to Capital Employed (avg)
178.08
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3,752.76%
ROE (avg)
3,113.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.72
EV to EBIT
15.30
EV to EBITDA
12.61
EV to Capital Employed
0.83
EV to Sales
0.68
PEG Ratio
0.01
Dividend Yield
0.59%
ROCE (Latest)
5.42%
ROE (Latest)
6.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET SALES(9M)
At CNY 1,764.2 MM has Grown at 25.95%
ROCE(HY)
Highest at 7.05%
RAW MATERIAL COST(Y)
Fallen by -7.97% (YoY
PRE-TAX PROFIT(Q)
At CNY 18.54 MM has Grown at 52.08%
NET PROFIT(Q)
At CNY 13.56 MM has Grown at 58.4%
-14What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 68.08 %
INTEREST COVERAGE RATIO(Q)
Lowest at 443.34
INTEREST(Q)
Highest at CNY 4.59 MM
Here's what is working for Wells Advanced Materials (Shanghai) Co., Ltd.
Net Sales
At CNY 1,764.2 MM has Grown at 25.95%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 18.54 MM has Grown at 52.08%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 13.56 MM has Grown at 58.4%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Raw Material Cost
Fallen by -7.97% (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 Coverage Ratio
Lowest at 443.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 68.08 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at CNY 4.59 MM
in the last five periods and Increased by 7.65% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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