Why is Zhejiang Weixing New Building Materials Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.23% and Operating profit at -4.11% over the last 5 years
2
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST(HY) At CNY 0.47 MM has Grown at 48.34%
- OPERATING CASH FLOW(Y) Lowest at CNY 1,351.94 MM
- NET SALES(HY) At CNY 2,471.75 MM has Grown at -10.96%
3
With ROE of 19.41%, it has a very attractive valuation with a 3.49 Price to Book Value
- Over the past year, while the stock has generated a return of -15.15%, its profits have fallen by -32.1%
- At the current price, the company has a high dividend yield of 5
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -15.15% 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.
-11.29%
-1.35
27.13%
China Shanghai Composite
15.17%
1.02
14.86%
Quality key factors
Factor
Value
Sales Growth (5y)
4.23%
EBIT Growth (5y)
-4.11%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.47
Sales to Capital Employed (avg)
1.24
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
18
Industry P/E
Price to Book Value
3.49
EV to EBIT
14.87
EV to EBITDA
12.51
EV to Capital Employed
5.38
EV to Sales
2.36
PEG Ratio
NA
Dividend Yield
4.99%
ROCE (Latest)
36.19%
ROE (Latest)
19.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.64% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.97 times
-17What is not working for the Company
INTEREST(HY)
At CNY 0.47 MM has Grown at 48.34%
OPERATING CASH FLOW(Y)
Lowest at CNY 1,351.94 MM
NET SALES(HY)
At CNY 2,471.75 MM has Grown at -10.96%
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.4 times
Here's what is working for Zhejiang Weixing New Building Materials Co., Ltd.
Inventory Turnover Ratio
Highest at 3.97 times
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 -2.64% (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 Weixing New Building Materials Co., Ltd.
Interest
At CNY 0.47 MM has Grown at 48.34%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 1,351.94 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)
Net Sales
At CNY 2,471.75 MM has Grown at -10.96%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debtors Turnover Ratio
Lowest at 9.4 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






