ScoreWhy is Zhejiang Wazam New Material Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.82%
- The company has been able to generate a Return on Capital Employed (avg) of 2.82% signifying low profitability per unit of total capital (equity and debt)
2
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 14.68% and Operating profit at -186.17% 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 4.66% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 14.68% and Operating profit at -186.17% over the last 5 years
4
With a growth in Net Profit of 31.89%, the company declared Very Positive results in Mar 25
- NET SALES(HY) At CNY 2,058.63 MM has Grown at 20.27%
- PRE-TAX PROFIT(Q) At CNY 15.98 MM has Grown at 161.91%
- NET PROFIT(Q) At CNY 17.56 MM has Grown at 172.71%
5
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 50.07%, its profits have risen by 38.8%
Real-Time Research ReportHow 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.
50.07%
1.55
54.10%
China Shanghai Composite
14.77%
1.01
14.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.68%
EBIT Growth (5y)
-186.17%
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
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.82%
ROE (avg)
4.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.02
EV to EBIT
-127.39
EV to EBITDA
92.51
EV to Capital Employed
2.37
EV to Sales
1.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.86%
ROE (Latest)
-4.32%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
NET SALES(HY)
At CNY 2,058.63 MM has Grown at 20.27%
PRE-TAX PROFIT(Q)
At CNY 15.98 MM has Grown at 161.91%
NET PROFIT(Q)
At CNY 17.56 MM has Grown at 172.71%
RAW MATERIAL COST(Y)
Fallen by -56.66% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 7.75%
EPS(Q)
Highest at CNY 0.13
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 23.38 MM
DEBT-EQUITY RATIO
(HY)
Highest at 197.21 %
Here's what is working for Zhejiang Wazam New Material Co., Ltd.
Pre-Tax Profit
At CNY 15.98 MM has Grown at 161.91%
over average net sales of the previous four periods of CNY -25.81 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 17.56 MM has Grown at 172.71%
over average net sales of the previous four periods of CNY -24.15 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
At CNY 2,058.63 MM has Grown at 20.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 15.98 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 17.56 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.13
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 7.75%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -56.66% (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 Wazam New Material Co., Ltd.
Operating Cash Flow
Lowest at CNY 23.38 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at 197.21 %
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
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