Zhejiang Three Stars New Materials Co., Ltd. (603578) 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 Three Stars New Materials Co., Ltd.

Why is Zhejiang Three Stars New Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 28.79% and Operating profit at -218.79% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY -49.95 MM has Grown at -732.42%
INTEREST(HY) At CNY 36.56 MM has Grown at 278.84%
ROCE(HY) Lowest at -12.62%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 16.73%, its profits have fallen by -534.7%
At the current price, the company has a high dividend yield of 0

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 Building Products)

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

Is Zhejiang Three Stars New Materials Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Three Stars New Materials Co., Ltd.

-1.25%

0.64

44.68%

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)

26.14%

EBIT Growth (5y)

-218.35%

EBIT to Interest (avg)

9.86

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

1.69

Sales to Capital Employed (avg)

0.50

Tax Ratio

10.59%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

ROE (avg)

8.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.84

EV to EBIT

-18.51

EV to EBITDA

-45.71

EV to Capital Employed

1.57

EV to Sales

2.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.47%

ROE (Latest)

-17.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 597.54 MM

NET SALES(HY)

At CNY 824.71 MM has Grown at 20.09%

RAW MATERIAL COST(Y)

Fallen by -95.88% (YoY

CASH AND EQV(HY)

Highest at CNY 1,791.76 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.35 times

PRE-TAX PROFIT(Q)

At CNY -8.21 MM has Grown at 82.91%

NET PROFIT(Q)

At CNY -3.13 MM has Grown at 92.21%

-13What is not working for the Company

INTEREST(9M)

At CNY 52.47 MM has Grown at 21.48%

NET PROFIT(HY)

At CNY -120.87 MM has Grown at -42.8%

ROCE(HY)

Lowest at -14.98%

RAW MATERIAL COST(Y)

Grown by 9.08% (YoY

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

Net Sales

At CNY 824.71 MM has Grown at 20.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 597.54 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY -8.21 MM has Grown at 82.91%

over average net sales of the previous four periods of CNY -48.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.13 MM has Grown at 92.21%

over average net sales of the previous four periods of CNY -40.2 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,791.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.35 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -95.88% (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 Three Stars New Materials Co., Ltd.

Interest

At CNY 52.47 MM has Grown at 21.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 9.08% (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