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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Hengda New Material Co., Ltd.

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

With a growth in Net Profit of 89.14%, the company declared Very Positive results in Mar 26

NET SALES(HY) At CNY 611.75 MM has Grown at 21.72%
ROCE(HY) Highest at 6.62%
INVENTORY TURNOVER RATIO(HY) Highest at 2.5 times

With ROE of 6.25%, it has a very attractive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of 10.60%, its profits have risen by 48.8% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

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, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hengda New Material Co., Ltd.

10.6%

0.48

44.20%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.34%

EBIT Growth (5y)

5.73%

EBIT to Interest (avg)

67.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.66

Tax Ratio

8.30%

Dividend Payout Ratio

44.44%

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

0.73

EV to EBIT

8.74

EV to EBITDA

6.03

EV to Capital Employed

0.67

EV to Sales

0.67

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

7.68%

ROE (Latest)

6.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

19What is working for the Company

NET SALES(HY)

At CNY 611.75 MM has Grown at 21.72%

ROCE(HY)

Highest at 6.62%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.5 times

PRE-TAX PROFIT(Q)

At CNY 26.87 MM has Grown at 107.14%

RAW MATERIAL COST(Y)

Fallen by -42.84% (YoY

NET PROFIT(Q)

At CNY 23.79 MM has Grown at 101.2%

-10What is not working for the Company

INTEREST(HY)

At CNY 2.95 MM has Grown at 3,092.01%

OPERATING PROFIT(Q)

Lowest at CNY 23.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.96 %

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

Pre-Tax Profit

At CNY 26.87 MM has Grown at 107.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 611.75 MM has Grown at 21.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.5 times 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

Net Profit

At CNY 23.79 MM has Grown at 101.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -42.84% (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 Hengda New Material Co., Ltd.

Interest

At CNY 2.95 MM has Grown at 3,092.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 23.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales