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

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 2.51% and Operating profit at -16.34% over the last 5 years

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

NET PROFIT(HY) At CNY 29.63 MM has Grown at -52.02%
ROCE(HY) Lowest at 6.63%
DEBT-EQUITY RATIO (HY) Highest at 70.56 %

With ROE of 5.68%, it has a very expensive valuation with a 1.70 Price to Book Value

Over the past year, while the stock has generated a return of -8.89%, its profits have fallen by -57.1%
At the current price, the company has a high dividend yield of 0.4

Below par performance in long term as well as near term

Along with generating -8.89% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huada New Materials Co., Ltd.

-100.0%

0.88

34.64%

China Shanghai Composite

20.18%

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)

1.09%

EBIT Growth (5y)

-174.35%

EBIT to Interest (avg)

26.32

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.97

Tax Ratio

14.11%

Dividend Payout Ratio

38.70%

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.34

EV to EBIT

-45.47

EV to EBITDA

-190.91

EV to Capital Employed

0.59

EV to Sales

0.32

PEG Ratio

Dividend Yield

2.35%

ROCE (Latest)

-1.29%

ROE (Latest)

-0.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 873.4 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 59.68 times

-27What is not working for the Company

ROCE(HY)

Lowest at -0.1%

INTEREST(Q)

At CNY 6.81 MM has Grown at inf%

PRE-TAX PROFIT(Q)

Lowest at CNY -32.32 MM

NET PROFIT(Q)

Lowest at CNY -33.14 MM

RAW MATERIAL COST(Y)

Grown by 61.98% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -33.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.29 %

EPS(Q)

Lowest at CNY -0.06

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

Operating Cash Flow

Highest at CNY 873.4 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 59.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At CNY -32.32 MM has Fallen at -173.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -33.14 MM has Fallen at -185.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 6.81 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY -32.32 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -33.14 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -33.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY -0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 61.98% (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