Zhejiang Huada New Materials Co., Ltd. (605158) 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 Huada New Materials Co., Ltd.

Why is Zhejiang Huada New Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.95% and Operating profit at -18.35% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -3,022.41 MM
ROCE(HY) Lowest at 7.79%
INTEREST(Q) At CNY 14.96 MM has Grown at inf%

With ROE of 5.68%, it has a very expensive valuation with a 0.43 Price to Book Value

Over the past year, while the stock has generated a return of -9.27%, its profits have fallen by -57.1%
At the current price, the company has a high dividend yield of 1.8

Below par performance in long term as well as near term

Along with generating -9.27% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Ferrous Metals)

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

Is Zhejiang Huada New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huada New Materials Co., Ltd.

-100.0%

0.81

40.14%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.95%

EBIT Growth (5y)

-18.35%

EBIT to Interest (avg)

26.32

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.14

Tax Ratio

14.11%

Dividend Payout Ratio

33.44%

Pledged Shares

Institutional Holding

ROCE (avg)

7.42%

ROE (avg)

10.59%

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

0.43

EV to EBIT

55.12

EV to EBITDA

22.31

EV to Capital Employed

0.61

EV to Sales

0.34

PEG Ratio

Dividend Yield

1.76%

ROCE (Latest)

1.11%

ROE (Latest)

5.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 9,332.18 MM

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -3,022.41 MM

ROCE(HY)

Lowest at 7.79%

INTEREST(Q)

At CNY 14.96 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At CNY 44.1 MM has Fallen at -46.92%

NET PROFIT(Q)

At CNY 38.76 MM has Fallen at -45.56%

RAW MATERIAL COST(Y)

Grown by 17.95% (YoY

NET SALES(Q)

Lowest at CNY 1,399.07 MM

Here's what is working for Zhejiang Huada New Materials Co., Ltd.

Cash and Eqv

Highest at CNY 9,332.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhejiang Huada New Materials Co., Ltd.

Operating Cash Flow

Lowest at CNY -3,022.41 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

At CNY 14.96 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 44.1 MM has Fallen at -46.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 38.76 MM has Fallen at -45.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 1,399.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -11.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 17.95% (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

Non Operating Income

Highest at CNY 1.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income