Why is Zhejiang Weixing New Building Materials Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 6.54% and Operating profit at -0.95% over the last 5 years
2
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST(HY) At CNY 0.46 MM has Grown at 20.23%
- NET PROFIT(9M) At CNY 600.02 MM has Grown at -33.41%
- RAW MATERIAL COST(Y) Grown by 5.9% (YoY)
3
With ROE of 19.41%, it has a very attractive valuation with a 3.20 Price to Book Value
- Over the past year, while the stock has generated a return of -30.55%, its profits have fallen by -32.1%
- At the current price, the company has a high dividend yield of 6.5
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -30.55% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Zhejiang Weixing New Building Materials Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zhejiang Weixing New Building Materials Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zhejiang Weixing New Building Materials Co., Ltd.
-18.03%
-1.45
25.26%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
6.54%
EBIT Growth (5y)
-0.95%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.47
Sales to Capital Employed (avg)
1.23
Tax Ratio
16.05%
Dividend Payout Ratio
98.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
49.82%
ROE (avg)
23.96%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
3.20
EV to EBIT
13.46
EV to EBITDA
11.32
EV to Capital Employed
4.87
EV to Sales
2.13
PEG Ratio
NA
Dividend Yield
6.53%
ROCE (Latest)
36.19%
ROE (Latest)
19.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
1What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 99.9%
-16What is not working for the Company
INTEREST(HY)
At CNY 0.46 MM has Grown at 20.23%
NET PROFIT(9M)
At CNY 600.02 MM has Grown at -33.41%
RAW MATERIAL COST(Y)
Grown by 5.9% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.33%
NET SALES(Q)
Fallen at -12.18%
Here's what is working for Zhejiang Weixing New Building Materials Co., Ltd.
Dividend Payout Ratio
Highest at 99.9%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Zhejiang Weixing New Building Materials Co., Ltd.
Interest
At CNY 0.46 MM has Grown at 20.23%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 600.02 MM has Grown at -33.41%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Fallen at -12.18%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debtors Turnover Ratio
Lowest at 8.33%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.9% (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






