Zhejiang Hengda 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 Hengda New Material Co., Ltd.

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

Poor Management Efficiency with a low ROCE of 6.47%

The company has been able to generate a Return on Capital Employed (avg) of 6.47% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 10.60% and Operating profit at -13.30% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 0.09 MM has Grown at 90.18%
INTEREST COVERAGE RATIO(Q) Lowest at 26,453.98
OPERATING PROFIT(Q) Lowest at CNY 12 MM

With ROE of 4.25%, it has a attractive valuation with a 0.68 Price to Book Value

Over the past year, while the stock has generated a return of 23.01%, its profits have fallen by -27%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Hengda New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hengda New Material Co., Ltd.

-100.0%

0.75

38.13%

China Shanghai Composite

15.19%

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)

10.60%

EBIT Growth (5y)

-13.30%

EBIT to Interest (avg)

67.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

95.51

Tax Ratio

8.30%

Dividend Payout Ratio

45.45%

Pledged Shares

Institutional Holding

ROCE (avg)

6.47%

ROE (avg)

5.32%

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

0.68

EV to EBIT

11.85

EV to EBITDA

6.19

EV to Capital Employed

0.60

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

5.06%

ROE (Latest)

4.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -19.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.09%

-22What is not working for the Company

INTEREST(HY)

At CNY 0.09 MM has Grown at 90.18%

INTEREST COVERAGE RATIO(Q)

Lowest at 26,453.98

OPERATING PROFIT(Q)

Lowest at CNY 12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.98 %

PRE-TAX PROFIT(Q)

Fallen at -28.59%

NET PROFIT(Q)

Lowest at CNY 11.82 MM

EPS(Q)

Lowest at CNY 0.15

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

Inventory Turnover Ratio

Highest at 2.24%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -19.02% (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 Hengda New Material Co., Ltd.

Interest

At CNY 0.09 MM has Grown at 90.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 26,453.98

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 12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -28.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 11.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -29.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)