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 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.

-31.27%

4.37

67.57%

China Shanghai Composite

16.67%

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

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

6.78

EV to EBIT

303.92

EV to EBITDA

79.98

EV to Capital Employed

4.14

EV to Sales

4.29

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

1.36%

ROE (Latest)

7.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

PRE-TAX PROFIT(Q)

At CNY 11.97 MM has Grown at 1,925.55%

OPERATING CASH FLOW(Y)

Highest at CNY 201.24 MM

NET PROFIT(Q)

At CNY 13.85 MM has Grown at 135.15%

RAW MATERIAL COST(Y)

Fallen by -6.84% (YoY

NET SALES(Q)

At CNY 762.33 MM has Grown at 23.12%

-6What is not working for the Company

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

OPERATING PROFIT MARGIN(Q)

Lowest at 1.41 %

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

Pre-Tax Profit

At CNY 11.97 MM has Grown at 1,925.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 13.85 MM has Grown at 135.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 201.24 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

At CNY 762.33 MM has Grown at 23.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -6.84% (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.

Interest Coverage Ratio

Lowest at 219.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 10.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales