Zhejiang Wanfeng Chemical Co., Ltd. () 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 Wanfeng Chemical Co., Ltd.

Why is Zhejiang Wanfeng Chemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1,108.11%

The company has been able to generate a Return on Capital Employed (avg) of 1,108.11% signifying low profitability per unit of total capital (equity and debt)

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 6.91% and Operating profit at 13.61% 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 2,249.96% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.91% and Operating profit at 13.61% over the last 5 years

Flat results in Sep 25

INTEREST(HY) At CNY 1.97 MM has Grown at 80.4%
INTEREST COVERAGE RATIO(Q) Lowest at 1,451.67
DEBT-EQUITY RATIO (HY) Highest at -21.19 %

With ROE of 4.76%, it has a very attractive valuation with a 0.54 Price to Book Value

Over the past year, while the stock has generated a return of 65.52%, its profits have risen by 78.6% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Wanfeng Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang Wanfeng Chemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wanfeng Chemical Co., Ltd.

40.12%

1.11

41.11%

China Shanghai Composite

15.45%

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)

6.91%

EBIT Growth (5y)

13.61%

EBIT to Interest (avg)

20.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.42

Tax Ratio

15.92%

Dividend Payout Ratio

31.32%

Pledged Shares

Institutional Holding

ROCE (avg)

1,108.11%

ROE (avg)

2,249.96%

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

0.54

EV to EBIT

8.17

EV to EBITDA

4.70

EV to Capital Employed

0.45

EV to Sales

0.72

PEG Ratio

0.14

Dividend Yield

0.51%

ROCE (Latest)

5.53%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

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

12What is working for the Company

ROCE(HY)

Highest at 5.26%

RAW MATERIAL COST(Y)

Fallen by -37.64% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.58 times

PRE-TAX PROFIT(Q)

At CNY 13.59 MM has Grown at 87.09%

NET PROFIT(Q)

At CNY 12.1 MM has Grown at 86.55%

-13What is not working for the Company

INTEREST(HY)

At CNY 1.97 MM has Grown at 80.4%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,451.67

DEBT-EQUITY RATIO (HY)

Highest at -21.19 %

OPERATING PROFIT(Q)

Lowest at CNY 13.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.65 %

Here's what is working for Zhejiang Wanfeng Chemical Co., Ltd.

Pre-Tax Profit

At CNY 13.59 MM has Grown at 87.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.1 MM has Grown at 86.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -37.64% (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 Wanfeng Chemical Co., Ltd.

Interest

At CNY 1.97 MM has Grown at 80.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,451.67

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 13.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -21.19 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio