Zhejiang Huilong New Materials 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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Huilong New Materials Co., Ltd.

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

Poor long term growth as Net Sales has grown by an annual rate of 13.78% and Operating profit at -26.64% over the last 5 years

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

INTEREST(HY) At CNY 1.08 MM has Grown at 2,295.09%
INTEREST COVERAGE RATIO(Q) Lowest at 1,816.04
NET PROFIT(9M) At CNY 23 MM has Grown at -27.04%

With ROE of 4.28%, it has a very expensive valuation with a 2.59 Price to Book Value

Over the past year, while the stock has generated a return of 76.05%, its profits have fallen by -22.7%

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 Garments & Apparels)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huilong New Materials Co., Ltd.

-100.0%

2.50

47.95%

China Shanghai Composite

14.03%

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)

13.78%

EBIT Growth (5y)

-26.64%

EBIT to Interest (avg)

38.83

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.88

Tax Ratio

2.94%

Dividend Payout Ratio

75.30%

Pledged Shares

Institutional Holding

ROCE (avg)

8.07%

ROE (avg)

7.00%

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

2.59

EV to EBIT

102.24

EV to EBITDA

35.68

EV to Capital Employed

2.10

EV to Sales

2.64

PEG Ratio

Dividend Yield

ROCE (Latest)

2.06%

ROE (Latest)

4.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 96.51 MM

RAW MATERIAL COST(Y)

Fallen by -19.32% (YoY

NET SALES(Q)

At CNY 193.06 MM has Grown at 23.27%

PRE-TAX PROFIT(Q)

Highest at CNY 11.46 MM

NET PROFIT(Q)

Highest at CNY 10.59 MM

EPS(Q)

Highest at CNY 0.11

-21What is not working for the Company

INTEREST(HY)

At CNY 1.08 MM has Grown at 2,295.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,816.04

NET PROFIT(9M)

At CNY 23 MM has Grown at -27.04%

ROCE(HY)

Lowest at 4.53%

DEBT-EQUITY RATIO (HY)

Highest at 35.4 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.62%

OPERATING PROFIT(Q)

Lowest at CNY 9.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.92 %

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

Operating Cash Flow

Highest at CNY 96.51 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 193.06 MM has Grown at 23.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 11.46 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 10.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -19.32% (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 Huilong New Materials Co., Ltd.

Interest

At CNY 1.08 MM has Grown at 2,295.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,816.04 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 35.4 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 9.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 15.62%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio