Zhejiang Yangfan New Materials Co., Ltd. (300637) 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 Yangfan New Materials Co., Ltd.

Why is Zhejiang Yangfan New Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.43%

The company has been able to generate a Return on Capital Employed (avg) of 1.43% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 16.35% and Operating profit at 0.89% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.35% and Operating profit at 0.89% over the last 5 years

The company has declared positive results for the last 2 consecutive quarters

PRE-TAX PROFIT(Q) At CNY 7.72 MM has Grown at 365.89%
NET PROFIT(Q) At CNY 7.51 MM has Grown at 1,862.55%
OPERATING CASH FLOW(Y) Highest at CNY 47.15 MM

With ROE of -0.24%, it has a risky valuation with a 4.41 Price to Book Value

Over the past year, while the stock has generated a return of 6.59%, its profits have risen by 98.4%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Yangfan New Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Zhejiang Yangfan New Materials Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Yangfan New Materials Co., Ltd.

16.16%

0.11

48.81%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.35%

EBIT Growth (5y)

0.89%

EBIT to Interest (avg)

0.20

Debt to EBITDA (avg)

5.62

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.61

Tax Ratio

30.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.43%

ROE (avg)

1.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.41

EV to EBIT

249.49

EV to EBITDA

37.76

EV to Capital Employed

3.14

EV to Sales

4.02

PEG Ratio

Dividend Yield

ROCE (Latest)

1.26%

ROE (Latest)

-0.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

27What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 7.72 MM has Grown at 365.89%

NET PROFIT(Q)

At CNY 7.51 MM has Grown at 1,862.55%

OPERATING CASH FLOW(Y)

Highest at CNY 47.15 MM

NET SALES(HY)

At CNY 441.22 MM has Grown at 22.59%

ROCE(HY)

Highest at 1.66%

RAW MATERIAL COST(Y)

Fallen by -69.87% (YoY

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.43 %

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

Pre-Tax Profit

At CNY 7.72 MM has Grown at 365.89%

over average net sales of the previous four periods of CNY 1.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.51 MM has Grown at 1,862.55%

over average net sales of the previous four periods of CNY -0.43 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 441.22 MM has Grown at 22.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 47.15 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -69.87% (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 Yangfan New Materials Co., Ltd.

Operating Profit

Lowest at CNY 11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales