ZheJiang Wansheng Co., Ltd. (603010) 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 Wansheng Co., Ltd.

Why is ZheJiang Wansheng Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.04% and Operating profit at -28.53% over the last 5 years

The company has declared negative results for the last 12 consecutive quarters

NET PROFIT(HY) At CNY 30.71 MM has Grown at -61.24%
INTEREST(HY) At CNY 19.27 MM has Grown at 43.86%
ROCE(HY) Lowest at 0.92%

With ROE of 1.03%, it has a expensive valuation with a 1.71 Price to Book Value

Over the past year, while the stock has generated a return of 10.56%, its profits have fallen by -77.7%
At the current price, the company has a high dividend yield of 0.8

Underperformed the market in the last 1 year

The stock has generated a return of 10.56% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 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.

49.8%

0.52

33.66%

China Shanghai Composite

24.02%

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)

10.04%

EBIT Growth (5y)

-28.53%

EBIT to Interest (avg)

25.06

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.56

Tax Ratio

38.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.89%

ROE (avg)

12.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

298

Industry P/E

Price to Book Value

1.98

EV to EBIT

189.53

EV to EBITDA

36.94

EV to Capital Employed

1.77

EV to Sales

2.46

PEG Ratio

Dividend Yield

0.66%

ROCE (Latest)

0.93%

ROE (Latest)

0.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

NET SALES(Q)

Highest at CNY 980.49 MM

PRE-TAX PROFIT(Q)

At CNY 30.54 MM has Grown at 113.37%

NET PROFIT(Q)

At CNY 18.4 MM has Grown at 107.57%

-25What is not working for the Company

NET PROFIT(HY)

At CNY -997.77 MM has Grown at -8,899.09%

ROCE(HY)

Lowest at -30.66%

DEBT-EQUITY RATIO (HY)

Highest at 50.29 %

RAW MATERIAL COST(Y)

Grown by 10.21% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.54 times

INTEREST(Q)

Highest at CNY 12.66 MM

Here's what is working for ZheJiang Wansheng Co., Ltd.

Net Sales

Highest at CNY 980.49 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 30.54 MM has Grown at 113.37%

over average net sales of the previous four periods of CNY -228.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 980.49 MM has Grown at 16.11%

over average net sales of the previous four periods of CNY 844.45 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 18.4 MM has Grown at 107.57%

over average net sales of the previous four periods of CNY -243.06 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for ZheJiang Wansheng Co., Ltd.

Interest

At CNY 12.66 MM has Grown at 16.18%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 50.29 % and Grown

In each half year 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

Interest

Highest at CNY 12.66 MM

in the last five periods and Increased by 16.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 3.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.21% (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

Non Operating Income

Highest at CNY 0.98 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income