Zhejiang Wufangzhai Industry 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 Wufangzhai Industry Co., Ltd.

Why is Zhejiang Wufangzhai Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.50% and Operating profit at -14.65% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 41.22 MM
ROCE(HY) Lowest at 5.99%
NET SALES(Q) At CNY 393.77 MM has Fallen at -15.68%

With ROE of 5.64%, it has a expensive valuation with a 1.93 Price to Book Value

Over the past year, while the stock has generated a return of -5.16%, its profits have fallen by -27%
At the current price, the company has a high dividend yield of 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.16% 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 hold?

Overall Portfolio exposure to Zhejiang Wufangzhai Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Zhejiang Wufangzhai Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wufangzhai Industry Co., Ltd.

-10.34%

-0.33

31.79%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.50%

EBIT Growth (5y)

-14.65%

EBIT to Interest (avg)

58.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.25

Tax Ratio

20.47%

Dividend Payout Ratio

68.18%

Pledged Shares

Institutional Holding

ROCE (avg)

88.36%

ROE (avg)

6.43%

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

1.93

EV to EBIT

26.50

EV to EBITDA

12.43

EV to Capital Employed

2.18

EV to Sales

1.40

PEG Ratio

Dividend Yield

0.50%

ROCE (Latest)

8.22%

ROE (Latest)

5.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

NET PROFIT(HY)

Higher at CNY 220.06 MM

RAW MATERIAL COST(Y)

Fallen by -7.57% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.23 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 41.22 MM

ROCE(HY)

Lowest at 5.99%

NET SALES(Q)

At CNY 393.77 MM has Fallen at -15.68%

DEBT-EQUITY RATIO (HY)

Highest at -20.41 %

Here's what is working for Zhejiang Wufangzhai Industry Co., Ltd.

Net Profit

Higher at CNY 220.06 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 8.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.57% (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 Wufangzhai Industry Co., Ltd.

Net Sales

At CNY 393.77 MM has Fallen at -15.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 41.22 MM

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 -20.41 %

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