Zhejiang Wazam New Material Co., Ltd. (603186) 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 Wazam New Material Co., Ltd.

Why is Zhejiang Wazam New Material Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.82%

Poor long term growth as Net Sales has grown by an annual rate of 15.12% and Operating profit at -166.52% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 3.33%, the company declared Very Positive results in Sep 25

PRE-TAX PROFIT(Q) At CNY 18.94 MM has Grown at 225.28%
OPERATING CASH FLOW(Y) Highest at CNY 312.37 MM
ROCE(HY) Highest at -1.84%

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 207.44%, its profits have risen by 38.8%

Market Beating performance in long term as well as near term

Along with generating 207.44% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Wazam New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Zhejiang Wazam New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wazam New Material Co., Ltd.

150.38%

4.33

56.66%

China Shanghai Composite

15.17%

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)

15.12%

EBIT Growth (5y)

-166.52%

EBIT to Interest (avg)

1.52

Debt to EBITDA (avg)

29.10

Net Debt to Equity (avg)

1.97

Sales to Capital Employed (avg)

0.76

Tax Ratio

3.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.82%

ROE (avg)

4.66%

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

3.80

EV to EBIT

-122.21

EV to EBITDA

88.74

EV to Capital Employed

2.28

EV to Sales

1.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.86%

ROE (Latest)

-4.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly 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

22What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 18.94 MM has Grown at 225.28%

OPERATING CASH FLOW(Y)

Highest at CNY 312.37 MM

ROCE(HY)

Highest at -1.84%

NET PROFIT(Q)

At CNY 19.94 MM has Grown at 221.41%

RAW MATERIAL COST(Y)

Fallen by -51.25% (YoY

NET SALES(Q)

Highest at CNY 1,100.59 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Zhejiang Wazam New Material Co., Ltd.

Pre-Tax Profit

At CNY 18.94 MM has Grown at 225.28%

over average net sales of the previous four periods of CNY -15.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.94 MM has Grown at 221.41%

over average net sales of the previous four periods of CNY -16.42 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 312.37 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,100.59 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -51.25% (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