Yantai Zhenghai Magnetic Material Co., Ltd. (300224) 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

Yantai Zhenghai Magnetic Material Co., Ltd.

Why is Yantai Zhenghai Magnetic Material Co., Ltd. ?

Flat results in Mar 26

PRE-TAX PROFIT(Q) At CNY 40.7 MM has Fallen at -46.95%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.68 times
NET SALES(Q) Lowest at CNY 1,364.67 MM

With ROE of 5.41%, it has a fair valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of -4.67%, its profits have risen by 254.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 1.7

Below par performance in long term as well as near term

Along with generating -4.67% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yantai Zhenghai Magnetic Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Yantai Zhenghai Magnetic Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yantai Zhenghai Magnetic Material Co., Ltd.

1.67%

0.71

48.85%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.53%

EBIT Growth (5y)

17.86%

EBIT to Interest (avg)

18.93

Debt to EBITDA (avg)

2.82

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.81

Tax Ratio

50.31%

Dividend Payout Ratio

55.56%

Pledged Shares

Institutional Holding

ROCE (avg)

6.47%

ROE (avg)

8.09%

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

1.89

EV to EBIT

39.02

EV to EBITDA

25.74

EV to Capital Employed

1.76

EV to Sales

1.53

PEG Ratio

0.14

Dividend Yield

1.66%

ROCE (Latest)

4.51%

ROE (Latest)

5.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly 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

13What is working for the Company

NET PROFIT(HY)

At CNY 123.6 MM has Grown at 539.85%

NET SALES(9M)

At CNY 5,338.33 MM has Grown at 19.72%

RAW MATERIAL COST(Y)

Fallen by 1.76% (YoY

CASH AND EQV(HY)

Highest at CNY 4,878.58 MM

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 40.7 MM has Fallen at -46.95%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.68 times

NET SALES(Q)

Lowest at CNY 1,364.67 MM

OPERATING PROFIT(Q)

Lowest at CNY 55.87 MM

NET PROFIT(Q)

At CNY 44.97 MM has Fallen at -40.76%

EPS(Q)

Lowest at CNY 0.05

Here's what is working for Yantai Zhenghai Magnetic Material Co., Ltd.

Cash and Eqv

Highest at CNY 4,878.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.76% (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 Yantai Zhenghai Magnetic Material Co., Ltd.

Net Sales

At CNY 1,364.67 MM has Fallen at -22.36%

over average net sales of the previous four periods of CNY 1,757.77 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 40.7 MM has Fallen at -46.95%

over average net sales of the previous four periods of CNY 76.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 1,364.67 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 55.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

At CNY 44.97 MM has Fallen at -40.76%

over average net sales of the previous four periods of CNY 75.92 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio