Zhejiang Yongtai Technology Co., Ltd. (002326) 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 Yongtai Technology Co., Ltd.

Why is Zhejiang Yongtai Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.50%

Poor long term growth as Net Sales has grown by an annual rate of 10.39% and Operating profit at -204.41% over the last 5 years
The company is Net-Debt Free

With a growth in Operating Profit of 48.94%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 268.57 MM
NET SALES(9M) At CNY 4,028.35 MM has Grown at 20.65%
INVENTORY TURNOVER RATIO(HY) Highest at 4.11 times

With ROE of -16.24%, it has a risky valuation with a 5.69 Price to Book Value

Over the past year, while the stock has generated a return of 110.85%, its profits have risen by 35.2%

Market Beating Performance

The stock has generated a return of 110.85% in the last 1 year, much higher than market (China Shanghai Composite) returns of 24.70%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Yongtai Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Zhejiang Yongtai Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Yongtai Technology Co., Ltd.

110.85%

2.71

61.22%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.39%

EBIT Growth (5y)

-204.41%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

3.70

Net Debt to Equity (avg)

1.73

Sales to Capital Employed (avg)

0.54

Tax Ratio

8.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.50%

ROE (avg)

7.06%

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

5.69

EV to EBIT

-52.56

EV to EBITDA

192.38

EV to Capital Employed

2.53

EV to Sales

4.25

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.81%

ROE (Latest)

-16.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 268.57 MM

NET SALES(9M)

At CNY 4,028.35 MM has Grown at 20.65%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.11 times

RAW MATERIAL COST(Y)

Fallen by -57.99% (YoY

PRE-TAX PROFIT(Q)

At CNY -49.18 MM has Grown at 62.29%

NET PROFIT(Q)

At CNY -26.25 MM has Grown at 74.36%

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 174.01 %

INTEREST(Q)

At CNY 40 MM has Grown at 35.56%

CASH AND EQV(HY)

Lowest at CNY 861.31 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.14 times

Here's what is working for Zhejiang Yongtai Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 268.57 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 4.11 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 4,028.35 MM has Grown at 20.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -49.18 MM has Grown at 62.29%

over average net sales of the previous four periods of CNY -130.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -26.25 MM has Grown at 74.36%

over average net sales of the previous four periods of CNY -102.37 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -57.99% (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 Yongtai Technology Co., Ltd.

Interest

At CNY 40 MM has Grown at 35.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 174.01 % and Grown

In each half year 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

Cash and Eqv

Lowest at CNY 861.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio