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

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 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 22.51% and Operating profit at 33.88% 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 -15.62%, the company declared Very Negative results in Mar 25

INTEREST(9M) At CNY 117.19 MM has Grown at 51.71%
INTEREST COVERAGE RATIO(Q) Lowest at 402.33
OPERATING PROFIT(Q) Lowest at CNY 144.02 MM

Below par performance in long term as well as near term

Along with generating -21.61% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

-21.61%

-0.76

28.41%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.51%

EBIT Growth (5y)

33.88%

EBIT to Interest (avg)

5.00

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

0.61

Tax Ratio

10.95%

Dividend Payout Ratio

30.49%

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

1.58

EV to EBIT

21.14

EV to EBITDA

11.66

EV to Capital Employed

1.31

EV to Sales

1.88

PEG Ratio

Dividend Yield

2.75%

ROCE (Latest)

6.18%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 935.39 MM

NET SALES(9M)

At CNY 5,133.33 MM has Grown at 18.39%

RAW MATERIAL COST(Y)

Fallen by 0.44% (YoY

CASH AND EQV(HY)

Highest at CNY 1,812.04 MM

-13What is not working for the Company

INTEREST(9M)

At CNY 117.19 MM has Grown at 51.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 402.33

OPERATING PROFIT(Q)

Lowest at CNY 144.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.84 %

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

Net Sales

At CNY 5,133.33 MM has Grown at 18.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 935.39 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,812.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.44% (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

At CNY 84.05 MM has Grown at 35.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 402.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 144.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.42 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income