Why is Zhejiang Huilong New Materials Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.96% and Operating profit at -17.68% over the last 5 years
2
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at CNY 107.09 MM
- NET SALES(HY) At CNY 508.67 MM has Grown at 19.13%
- RAW MATERIAL COST(Y) Fallen by -11.03% (YoY)
3
With ROE of 4.58%, it has a expensive valuation with a 3.00 Price to Book Value
- Over the past year, while the stock has generated a return of 48.82%, its profits have risen by 7.9% ; the PEG ratio of the company is 8.3
4
Market Beating Performance
- The stock has generated a return of 48.82% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%
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.
3.64%
2.03
55.69%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
12.96%
EBIT Growth (5y)
-17.68%
EBIT to Interest (avg)
34.23
Debt to EBITDA (avg)
2.78
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
0.81
Tax Ratio
6.19%
Dividend Payout Ratio
65.88%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.91%
ROE (avg)
7.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
75
Industry P/E
Price to Book Value
3.46
EV to EBIT
106.11
EV to EBITDA
51.41
EV to Capital Employed
2.37
EV to Sales
3.38
PEG Ratio
9.57
Dividend Yield
NA
ROCE (Latest)
2.23%
ROE (Latest)
4.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
17What is working for the Company
OPERATING PROFIT(Q)
Highest at CNY 30.17 MM
RAW MATERIAL COST(Y)
Fallen by -16.02% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 12.94 times
NET SALES(Q)
Highest at CNY 365.76 MM
NET PROFIT(Q)
At CNY 14.91 MM has Grown at 58.87%
-17What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 89.72 %
INTEREST COVERAGE RATIO(Q)
Lowest at 1,029.89
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.85 times
INTEREST(Q)
Highest at CNY 2.93 MM
Here's what is working for Zhejiang Huilong New Materials Co., Ltd.
Net Sales
At CNY 365.76 MM has Grown at 48.07%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 30.17 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (CNY MM)
Net Sales
Highest at CNY 365.76 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
At CNY 14.91 MM has Grown at 58.87%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debtors Turnover Ratio
Highest at 12.94 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -16.02% (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 2.93 MM has Grown at 379.29%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 1,029.89
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 89.72 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at CNY 2.93 MM
in the last five periods and Increased by 379.29% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Inventory Turnover Ratio
Lowest at 3.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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