Zhejiang Fulai New Material 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Fulai New Material Co., Ltd.

Why is Zhejiang Fulai New Material 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 12.97% and Operating profit at -16.61% 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 7.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.97% and Operating profit at -16.61% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 47.45 MM
INTEREST(Q) At CNY 5.48 MM has Grown at 13%
INVENTORY TURNOVER RATIO(HY) Lowest at 8.05%

With ROE of 7.13%, it has a very expensive valuation with a 7.00 Price to Book Value

Over the past year, while the stock has generated a return of 70.68%, its profits have risen by 22.1%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 70.68% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.61%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Fulai New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

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

Is Zhejiang Fulai New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Fulai New Material Co., Ltd.

-100.0%

3.24

74.22%

China Shanghai Composite

15.44%

1.01

14.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.97%

EBIT Growth (5y)

-16.61%

EBIT to Interest (avg)

26.48

Debt to EBITDA (avg)

4.81

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.85

Tax Ratio

18.77%

Dividend Payout Ratio

23.81%

Pledged Shares

Institutional Holding

ROCE (avg)

4.77%

ROE (avg)

7.67%

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

7.00

EV to EBIT

312.64

EV to EBITDA

82.27

EV to Capital Employed

4.25

EV to Sales

4.42

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

1.36%

ROE (Latest)

7.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

NET SALES(HY)

At CNY 1,362.45 MM has Grown at 20.63%

NET PROFIT(HY)

Higher at CNY 103.95 MM

ROCE(HY)

Highest at 10.11%

RAW MATERIAL COST(Y)

Fallen by -4.94% (YoY

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 47.45 MM

INTEREST(Q)

At CNY 5.48 MM has Grown at 13%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.05%

Here's what is working for Zhejiang Fulai New Material Co., Ltd.

Net Profit

At CNY 103.95 MM has Grown at 145.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,362.45 MM has Grown at 20.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Higher at CNY 103.95 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

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

Net Profit (CNY MM)

Raw Material Cost

Fallen by -4.94% (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 Zhejiang Fulai New Material Co., Ltd.

Operating Cash Flow

Lowest at CNY 47.45 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 5.48 MM has Grown at 13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 8.05%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio