Why is ZheJiang Wansheng Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 11.24% and Operating profit at -14.66% over the last 5 years
2
With a fall in EPS of -0.68%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 12 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 284.68 MM
- ROCE(HY) Lowest at 1.76%
- DEBT-EQUITY RATIO (HY) Highest at 26.11 %
3
With ROE of 1.03%, it has a expensive valuation with a 1.36 Price to Book Value
- Over the past year, while the stock has generated a return of 4.11%, its profits have fallen by -77.7%
- At the current price, the company has a high dividend yield of 1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 4.11% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ZheJiang Wansheng Co., Ltd. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ZheJiang Wansheng Co., Ltd.
4.11%
0.34
32.25%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
11.24%
EBIT Growth (5y)
-14.66%
EBIT to Interest (avg)
25.06
Debt to EBITDA (avg)
0.94
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.55
Tax Ratio
38.15%
Dividend Payout Ratio
44.30%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
15.89%
ROE (avg)
12.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
132
Industry P/E
Price to Book Value
1.36
EV to EBIT
101.59
EV to EBITDA
20.59
EV to Capital Employed
1.28
EV to Sales
1.86
PEG Ratio
NA
Dividend Yield
0.96%
ROCE (Latest)
1.26%
ROE (Latest)
1.03%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
3What is working for the Company
NET SALES(HY)
At CNY 1,601.95 MM has Grown at 19.46%
RAW MATERIAL COST(Y)
Fallen by -14.2% (YoY
-29What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 284.68 MM
ROCE(HY)
Lowest at 1.76%
DEBT-EQUITY RATIO
(HY)
Highest at 26.11 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.91%
NET PROFIT(Q)
At CNY 13.24 MM has Fallen at -49.5%
INTEREST(Q)
Highest at CNY 11.11 MM
Here's what is working for ZheJiang Wansheng Co., Ltd.
Net Sales
At CNY 1,601.95 MM has Grown at 19.46%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -14.2% (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 Wansheng Co., Ltd.
Interest
At CNY 11.11 MM has Grown at 24.17%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 13.24 MM has Fallen at -49.5%
over average net sales of the previous four periods of CNY 26.21 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 26.11 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 3.91% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at CNY 284.68 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
Highest at CNY 11.11 MM
in the last five periods and Increased by 24.17% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






