ScoreWhy is Zhejiang Taihua New Material Co., Ltd. ?
1
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
2
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)
3
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 ReportHow 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.
-17.59%
-0.57
28.75%
China Shanghai Composite
16.67%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.69%
EBIT Growth (5y)
29.33%
EBIT to Interest (avg)
5.00
Debt to EBITDA (avg)
3.65
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
0.62
Tax Ratio
10.95%
Dividend Payout Ratio
30.49%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.35%
ROE (avg)
10.09%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.55
EV to EBIT
20.87
EV to EBITDA
11.51
EV to Capital Employed
1.29
EV to Sales
1.86
PEG Ratio
NA
Dividend Yield
2.81%
ROCE (Latest)
6.18%
ROE (Latest)
12.38%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 988.2 MM
-29What is not working for the Company
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
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.76 times
NET SALES(Q)
Fallen at -10.67%
OPERATING PROFIT(Q)
Lowest at CNY 61.45 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.93 %
PRE-TAX PROFIT(Q)
Lowest at CNY 103.2 MM
NET PROFIT(Q)
Lowest at CNY 93.7 MM
EPS(Q)
Lowest at CNY 0.11
Here's what is working for Zhejiang Taihua New Material Co., Ltd.
Operating Cash Flow
Highest at CNY 988.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Here's what is not working for Zhejiang Taihua New Material Co., Ltd.
Pre-Tax Profit
At CNY 103.2 MM has Fallen at -53.01%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 93.7 MM has Fallen at -51.86%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 175.91
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CNY 105.94 MM has Grown at 7.3%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
Fallen at -10.67%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 61.45 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 3.93 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 103.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 93.7 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.11
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Lowest at 4.76 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 20.87% (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
Non Operating Income
Highest at CNY 0.74 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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