Zhejiang Weixing New Building Materials Co., Ltd. (002372) 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 Weixing New Building Materials Co., Ltd.

Why is Zhejiang Weixing New Building Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.51% and Operating profit at -9.32% over the last 5 years

The company has declared negative results for the last 9 consecutive quarters

INTEREST(HY) At CNY 0.92 MM has Grown at 21.83%
OPERATING CASH FLOW(Y) Lowest at CNY 1,234.79 MM
NET PROFIT(HY) At CNY 330.76 MM has Grown at -25.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.37% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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.

-18.9%

-1.73

27.58%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.51%

EBIT Growth (5y)

-9.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.19

Tax Ratio

16.05%

Dividend Payout Ratio

95.48%

Pledged Shares

Institutional Holding

ROCE (avg)

49.82%

ROE (avg)

23.96%

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

2.70

EV to EBIT

14.52

EV to EBITDA

12.21

EV to Capital Employed

4.10

EV to Sales

2.11

PEG Ratio

Dividend Yield

5.32%

ROCE (Latest)

28.27%

ROE (Latest)

14.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.14% (YoY

-28What is not working for the Company

INTEREST(HY)

At CNY 0.92 MM has Grown at 21.83%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,234.79 MM

NET PROFIT(HY)

At CNY 330.76 MM has Grown at -25.3%

ROCE(HY)

Lowest at 14.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 23,693.54

DEBT-EQUITY RATIO (HY)

Highest at -45.05 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.47 times

NET SALES(Q)

Lowest at CNY 812.69 MM

OPERATING PROFIT(Q)

Lowest at CNY 99.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.22 %

Here's what is working for Zhejiang Weixing New Building Materials Co., Ltd.

Raw Material Cost

Fallen by -8.14% (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 0.92 MM has Grown at 21.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 1,234.79 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)

Interest Coverage Ratio

Lowest at 23,693.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 330.76 MM has Grown at -25.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 812.69 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 99.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -45.05 %

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

Inventory Turnover Ratio

Lowest at 3.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.36 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income