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

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 13.92% and Operating profit at -9.87% 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 7.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.92% and Operating profit at -9.87% over the last 5 years

Flat results in Sep 25

NET PROFIT(HY) At CNY 29.61 MM has Grown at -24.99%
INTEREST COVERAGE RATIO(Q) Lowest at 219.87
OPERATING PROFIT(Q) Lowest at CNY 10.75 MM

With ROE of 7.13%, it has a very expensive valuation with a 6.78 Price to Book Value

Over the past year, while the stock has generated a return of -22.87%, its profits have risen by 22.1%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.87% returns

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 Other Industrial Products)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Fulai New Material Co., Ltd.

-15.24%

4.37

67.57%

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)

13.92%

EBIT Growth (5y)

-9.87%

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

53.30%

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

7.36

EV to EBIT

285.28

EV to EBITDA

99.33

EV to Capital Employed

4.47

EV to Sales

4.45

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

1.57%

ROE (Latest)

7.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 238.94 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.45 %

NET SALES(Q)

Highest at CNY 818.64 MM

-24What is not working for the Company

INTEREST(HY)

At CNY 11.38 MM has Grown at 10.25%

INTEREST COVERAGE RATIO(Q)

Lowest at 446.07

ROCE(HY)

Lowest at 3.2%

OPERATING PROFIT(Q)

Lowest at CNY 24.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.98 %

NET PROFIT(Q)

At CNY 19.25 MM has Fallen at -42.79%

RAW MATERIAL COST(Y)

Grown by 17.26% (YoY

PRE-TAX PROFIT(Q)

Fallen at -35.44%

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

Operating Cash Flow

Highest at CNY 238.94 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 818.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 818.64 MM has Grown at 35.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 27.45 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Zhejiang Fulai New Material Co., Ltd.

Interest Coverage Ratio

Lowest at 446.07 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 11.38 MM has Grown at 10.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 24.36 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.98 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 19.25 MM has Fallen at -42.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

Fallen at -35.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 17.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales