Zhejiang Weigang Technology Co., Ltd. () 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 Weigang Technology Co., Ltd.

Why is Zhejiang Weigang Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at -12.23% over the last 5 years

Flat results in Sep 25

INTEREST(HY) At CNY 2.04 MM has Grown at 346.49%
OPERATING CASH FLOW(Y) Lowest at CNY 97.63 MM
ROCE(HY) Lowest at 7.79%

With ROE of 7.11%, it has a attractive valuation with a 0.68 Price to Book Value

Over the past year, while the stock has generated a return of -15.86%, its profits have fallen by -13%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.45% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.86% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Weigang Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Zhejiang Weigang Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Weigang Technology Co., Ltd.

-14.92%

2.35

39.14%

China Shanghai Composite

15.45%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.86%

EBIT Growth (5y)

-12.23%

EBIT to Interest (avg)

49.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.36

Tax Ratio

11.73%

Dividend Payout Ratio

31.46%

Pledged Shares

Institutional Holding

ROCE (avg)

10.05%

ROE (avg)

7.11%

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

0.68

EV to EBIT

7.62

EV to EBITDA

5.44

EV to Capital Employed

0.56

EV to Sales

0.95

PEG Ratio

Dividend Yield

ROCE (Latest)

7.34%

ROE (Latest)

7.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

RAW MATERIAL COST(Y)

Fallen by -18.8% (YoY

NET SALES(Q)

Highest at CNY 149.79 MM

PRE-TAX PROFIT(Q)

Highest at CNY 33.42 MM

NET PROFIT(Q)

Highest at CNY 29.89 MM

EPS(Q)

Highest at CNY 0.21

-14What is not working for the Company

INTEREST(HY)

At CNY 2.04 MM has Grown at 346.49%

OPERATING CASH FLOW(Y)

Lowest at CNY 97.63 MM

ROCE(HY)

Lowest at 7.79%

DEBT-EQUITY RATIO (HY)

Highest at 5.81 %

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

Net Sales

Highest at CNY 149.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 33.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 29.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -18.8% (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 Weigang Technology Co., Ltd.

Interest

At CNY 2.04 MM has Grown at 346.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 97.63 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 5.81 %

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