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 Management Efficiency with a low ROCE of 7.42%

The company has been able to generate a Return on Capital Employed (avg) of 7.42% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.09% and Operating profit at -174.35% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.09% and Operating profit at -174.35% over the last 5 years

With ROE of -0.24%, it has a risky valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of -8.15%, its profits have fallen by -102.9%
At the current price, the company has a high dividend yield of 0.2

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.

-11.11%

0.73

37.29%

China Shanghai Composite

3.23%

0.23

14.72%

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)

18.27

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.97

Tax Ratio

100.00%

Dividend Payout Ratio

38.70%

Pledged Shares

Institutional Holding

ROCE (avg)

4.84%

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

1.42

EV to EBIT

-97.67

EV to EBITDA

-410.08

EV to Capital Employed

1.26

EV to Sales

0.70

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

-1.29%

ROE (Latest)

-0.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,992.05 MM

RAW MATERIAL COST(Y)

Fallen by -12.26% (YoY

NET SALES(Q)

Highest at CNY 2,764.02 MM

OPERATING PROFIT(Q)

Highest at CNY 97.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 3.52 %

PRE-TAX PROFIT(Q)

Highest at CNY 65.9 MM

NET PROFIT(Q)

Highest at CNY 56.87 MM

EPS(Q)

Highest at CNY 0.12

-12What is not working for the Company

NET PROFIT(HY)

At CNY 23.73 MM has Grown at -65.51%

ROCE(HY)

Lowest at 1.08%

DEBT-EQUITY RATIO (HY)

Highest at 79.46 %

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

Operating Cash Flow

Highest at CNY 1,992.05 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 2,764.02 MM has Grown at 62.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 2,764.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 97.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 3.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 65.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 65.9 MM has Grown at 86.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 56.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 56.87 MM has Grown at 89.27%

Year on Year (YoY)

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)

Raw Material Cost

Fallen by -12.26% (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 Huada New Materials Co., Ltd.

Debt-Equity Ratio

Highest at 79.46 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio