Zhejiang Hailide New Material Co., Ltd. (002206) 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 Hailide New Material Co., Ltd.

Why is Zhejiang Hailide New Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.36% and Operating profit at 12.56% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 619.84 MM
INTEREST COVERAGE RATIO(Q) Lowest at 967.78
OPERATING PROFIT(Q) Lowest at CNY 147.02 MM

With ROE of 14.35%, it has a very attractive valuation with a 1.41 Price to Book Value

Over the past year, while the stock has generated a return of 35.71%, its profits have risen by 52.1% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 3

Market Beating Performance

The stock has generated a return of 35.71% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Hailide New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

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

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hailide New Material Co., Ltd.

21.74%

1.25

34.24%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.36%

EBIT Growth (5y)

12.56%

EBIT to Interest (avg)

7.95

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.86

Tax Ratio

10.24%

Dividend Payout Ratio

50.95%

Pledged Shares

Institutional Holding

ROCE (avg)

9.12%

ROE (avg)

11.47%

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

1.41

EV to EBIT

11.04

EV to EBITDA

6.60

EV to Capital Employed

1.33

EV to Sales

1.08

PEG Ratio

0.19

Dividend Yield

3.04%

ROCE (Latest)

12.05%

ROE (Latest)

14.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

ROCE(HY)

Highest at 12.42%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.83%

RAW MATERIAL COST(Y)

Fallen by -32.78% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 24.94 %

PRE-TAX PROFIT(Q)

Highest at CNY 162.8 MM

NET PROFIT(Q)

Highest at CNY 145.61 MM

EPS(Q)

Highest at CNY 0.12

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 619.84 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 967.78

OPERATING PROFIT(Q)

Lowest at CNY 147.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.19 %

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

Inventory Turnover Ratio

Highest at 4.83% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

Highest at CNY 162.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 145.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 24.94 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -32.78% (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 Hailide New Material Co., Ltd.

Operating Cash Flow

Lowest at CNY 619.84 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 Coverage Ratio

Lowest at 967.78

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 147.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income