Zhejiang Wanliyang Co., Ltd. (002434) 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 Wanliyang Co., Ltd.

Why is Zhejiang Wanliyang Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.43%

The company has been able to generate a Return on Capital Employed (avg) of 3.43% 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 -0.12% and Operating profit at -10.97% 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 5.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.12% and Operating profit at -10.97% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 792.84 MM
DEBTORS TURNOVER RATIO(HY) Highest at 2.89 times
RAW MATERIAL COST(Y) Fallen by -29.01% (YoY)

With ROE of 6.06%, it has a fair valuation with a 2.18 Price to Book Value

Over the past year, while the stock has generated a return of -12.94%, its profits have risen by 51.1% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Wanliyang Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Zhejiang Wanliyang Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wanliyang Co., Ltd.

-2.07%

1.20

38.91%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.12%

EBIT Growth (5y)

-10.97%

EBIT to Interest (avg)

4.85

Debt to EBITDA (avg)

2.96

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

0.68

Tax Ratio

10.43%

Dividend Payout Ratio

54.70%

Pledged Shares

Institutional Holding

ROCE (avg)

3.43%

ROE (avg)

5.37%

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

2.18

EV to EBIT

57.64

EV to EBITDA

19.05

EV to Capital Employed

1.88

EV to Sales

2.46

PEG Ratio

0.70

Dividend Yield

1.02%

ROCE (Latest)

3.26%

ROE (Latest)

6.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 792.84 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.89 times

RAW MATERIAL COST(Y)

Fallen by -29.01% (YoY

NET PROFIT(9M)

Higher at CNY 340.7 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.9 %

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.17 times

NET SALES(Q)

At CNY 1,389.79 MM has Fallen at -8.15%

OPERATING PROFIT(Q)

Lowest at CNY 63.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.59 %

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

Operating Cash Flow

Highest at CNY 792.84 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)

Debtors Turnover Ratio

Highest at 2.89 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Debt-Equity Ratio

Lowest at 23.9 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Profit

Higher at CNY 340.7 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -29.01% (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 Wanliyang Co., Ltd.

Net Sales

At CNY 1,389.79 MM has Fallen at -8.15%

over average net sales of the previous four periods of CNY 1,513.07 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 63.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio