Zhejiang Taihua New Material Co., Ltd. (603055) 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 Taihua New Material Co., Ltd.

Why is Zhejiang Taihua New Material Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 22.69% and Operating profit at 29.33% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.09% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -10.67%, the company declared Very Negative results in Sep 25

INTEREST(9M) At CNY 105.94 MM has Grown at 7.3%
INTEREST COVERAGE RATIO(Q) Lowest at 175.91
RAW MATERIAL COST(Y) Grown by 20.87% (YoY)

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.19% returns

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 Taihua New Material Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Taihua New Material Co., Ltd.

-7.54%

-0.57

28.75%

China Shanghai Composite

21.43%

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)

18.09%

EBIT Growth (5y)

13.73%

EBIT to Interest (avg)

5.00

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

0.64

Tax Ratio

10.95%

Dividend Payout Ratio

30.17%

Pledged Shares

Institutional Holding

ROCE (avg)

6.35%

ROE (avg)

10.09%

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

1.31

EV to EBIT

23.95

EV to EBITDA

13.09

EV to Capital Employed

1.18

EV to Sales

1.78

PEG Ratio

Dividend Yield

5.34%

ROCE (Latest)

4.92%

ROE (Latest)

9.29%

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,601.51 MM

RAW MATERIAL COST(Y)

Fallen by -17.16% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 77.07 %

-13What is not working for the Company

NET PROFIT(9M)

At CNY 337.87 MM has Grown at -27.33%

ROCE(HY)

Lowest at 9.4%

INTEREST COVERAGE RATIO(Q)

Lowest at 457.38

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.05 times

NET SALES(Q)

Lowest at CNY 1,435.4 MM

OPERATING PROFIT(Q)

Lowest at CNY 144.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.07 %

Here's what is working for Zhejiang Taihua New Material Co., Ltd.

Operating Cash Flow

Highest at CNY 1,601.51 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)

Debt-Equity Ratio

Lowest at 77.07 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -17.16% (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 Taihua New Material Co., Ltd.

Interest Coverage Ratio

Lowest at 457.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 337.87 MM has Grown at -27.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 1,435.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 144.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio