Wetown Electric Group 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

Wetown Electric Group Co., Ltd.

Why is Wetown Electric Group Co., Ltd. ?

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 31.76% and Operating profit at -8.87% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.59% signifying low profitability per unit of shareholders funds

With a fall in PBT of -120.83%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
PRE-TAX PROFIT(Q) At CNY -1.93 MM has Fallen at -116.16%
NET PROFIT(Q) At CNY -2.22 MM has Fallen at -127.98%
NET SALES(HY) At CNY 1,723.2 MM has Grown at -11.63%

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 27.97%, its profits have fallen by -80.2%

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 Automobiles)

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

Is Wetown Electric Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wetown Electric Group Co., Ltd.

117.35%

1.99

59.19%

China Shanghai Composite

20.36%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.76%

EBIT Growth (5y)

-8.87%

EBIT to Interest (avg)

5.28

Debt to EBITDA (avg)

3.85

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

1.02

Tax Ratio

13.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.47%

ROE (avg)

8.59%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

2563

Industry P/E

Price to Book Value

4.97

EV to EBIT

149.87

EV to EBITDA

86.89

EV to Capital Employed

2.98

EV to Sales

2.99

PEG Ratio

Dividend Yield

ROCE (Latest)

1.99%

ROE (Latest)

0.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 158.82 MM

NET SALES(HY)

At CNY 2,334.91 MM has Grown at 45.08%

NET PROFIT(HY)

Higher at CNY 23.73 MM

RAW MATERIAL COST(Y)

Fallen by -9.09% (YoY

PRE-TAX PROFIT(Q)

At CNY 15.33 MM has Grown at 86.23%

-15What is not working for the Company

NET PROFIT(9M)

At CNY 21.51 MM has Grown at -26.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 182.58

INTEREST(Q)

Highest at CNY 17.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.97 %

Here's what is working for Wetown Electric Group Co., Ltd.

Net Profit

At CNY 23.73 MM has Grown at 2,824.44%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 2,334.91 MM has Grown at 45.08%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 158.82 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Higher at CNY 23.73 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 15.33 MM has Grown at 86.23%

over average net sales of the previous four periods of CNY 8.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -9.09% (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 Wetown Electric Group Co., Ltd.

Interest

At CNY 17.59 MM has Grown at 62.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 182.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 17.59 MM

in the last five periods and Increased by 62.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 2.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales