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688707.SS

STRONG SELLREMOVE

Guizhou Zhenhua E-chem Inc. · Basic Materials · China · $1.1B · Avg Vol: $43M/d

17
StockRank
Q
25
V
43
M
38
P/E (TTM)
—
ROE
-10.5%
D/E
0.5x
Dividend %
—
Director Trades · 180d
None in 180d →
Buybacks · 180d
None in 180d →
AI CONVICTION THESIS

Guizhou Zhenhua E-chem produces cathode materials for lithium batteries. The industry is suffering from massive domestic overcapacity, leading to severe price wars and margin destruction, making it a poor quality business.

COMPANY DESCRIPTION

Guizhou Zhenhua E-chem Inc. specializes in the R&D, production, and sale of cathode materials for lithium-ion batteries, with a focus on high-voltage single-crystal NCM materials. The company is a key supplier to global battery giants like CATL and BYD, leveraging its advanced material synthesis technology to deliver high-energy-density and high-safety products. Its strong position in the premium EV battery supply chain serves as a robust competitive moat.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGR
Revenue2.1B1.0B290M211M-53.2%
EPS0.420.03-0.16-0.13-92.0%
Shares443M443M509M509M+14.9%
Debt329M323M314M282M-4.9%
Equity604M574M653M589M-0.8%
Op CF171M240M-206M24M-48.1%
Inv CF-124M-38M-22M-41M—
Fin CF-20M-31M151M-40M—
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PRICE (1M)-20.0%
1.992.142.292.442.59May 8May 29Jun 18
SMA 50SMA 200
Close
$2.07
RSI (14)
46.5
52W High
$2.79
From 52W High
0.7%

SCORE BREAKDOWN

Quality
25
ROIC
-7.9%24.4
ROE
-10.5%23.5
GP/Assets
-3.1%3.8
Op. Margin
-47.8%6.8
FCF/Assets
-6.1%31.2
Piotroski
—26.7
Int. Cover
-7.1x17.6
D/E Ratio
0.48x34.6
Current Ratio
2.28x54.5
Value
43
P/E (TTM)
—N/A
EV/EBITDA
-55.8x94.2
P/FCF
—N/A
P/B
1.8x52.6
P/S
5.3x23.1
Div Yield
—N/A
Momentum
38
52W High %
74%53.9
RS 6M
-10%45.1
SMA 50/200
1.04x47.9
EPS Rev 4W
—N/A
EPS Rev 12W
—N/A
EPS Improve
-118%1.9
Q Growth
—N/A

FUNDAMENTALS

Market Cap
$1.1B
P/E (Forward)
-7.6x
Gross Margin
-15.3%

SECTOR PEERS

Closest peers in Basic Materials, ranked by industry match, size, and score similarity. Cross-listings of 688707.SS are excluded.

TickerCompanyMkt CapStockRankSignal
688707.SSGuizhou Zhenhua E-chem Inc.(you)$1.1B17STRONG SELL
600746.SSJiangsu SOPO Chemical Co. Ltd.$1.1B14STRONG SELL
600075.SSXinjiang Tianye Co.,Ltd.$1.3B15STRONG SELL
002971.SZHubei Heyuan Gas Co.,Ltd.$1.1B23SELL
301069.SZShandong Kaisheng New Materials Co.,Ltd.$1.3B20SELL
601015.SSShaanxi Heimao Coking Co., Ltd.$1.1B9STRONG SELL
600955.SSLihuayi Weiyuan Chemical Co., Ltd.$1.3B22SELL
600328.SSCNSIG Inner Mongolia Chemical Industry Co.,Ltd.$1.5B12STRONG SELL
002092.SZXinjiang Zhongtai Chemical Co., Ltd.$1.8B16STRONG SELL
600935.SSAnhui Hwasu Co.,Ltd.$1.3B10STRONG SELL

Peer medians: ROE 6.2% · P/E 33.4x · Gross margin 17.5%

Guizhou Zhenhua E-chem Inc. (688707.SS) — Stock Score Summary

Guizhou Zhenhua E-chem Inc. (688707.SS) has a MoatMap StockRank of 17/100 based on Quality (25/100), Value (43/100), and Momentum (38/100) factor scores. The current signal is STRONG SELL. Guizhou Zhenhua E-chem produces cathode materials for lithium batteries. The industry is suffering from massive domestic overcapacity, leading to severe price wars and margin destruction, making it a poor quality business.

Guizhou Zhenhua E-chem Inc. specializes in the R&D, production, and sale of cathode materials for lithium-ion batteries, with a focus on high-voltage single-crystal NCM materials. The company is a key supplier to global battery giants like CATL and BYD, leveraging its advanced material synthesis technology to deliver high-energy-density and high-safety products. Its strong position in the premium EV battery supply chain serves as a robust competitive moat.

Key Financial Metrics

Price$2.07
Market Cap$1.1B
P/E (Forward)-7.58
Price/Book1.83
Return on Equity-10.5%
Return on Invested Capital-7.9%
Debt/Equity47.92
Gross Margin-15.3%
Operating Margin-47.8%
Revenue Growth-32.6%
Free Cash Flow$-9M

Guizhou Zhenhua E-chem Inc. operates in the Chemicals industry, part of the Basic Materials sector (China).

Frequently Asked Questions

What is Guizhou Zhenhua E-chem Inc.’s (688707.SS) StockRank?
MoatMap’s StockRank for Guizhou Zhenhua E-chem Inc. (688707.SS) is 17/100, with a Strong Sell signal. It is a composite of Quality (25), Value (43), and Momentum (38) factor ranks across MoatMap’s 20,000+ stock universe.
Does Guizhou Zhenhua E-chem Inc. have an economic moat?
Guizhou Zhenhua E-chem Inc. (688707.SS) has a Quality factor score of 25/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Guizhou Zhenhua E-chem Inc. a buy, hold, or sell?
MoatMap’s current signal for Guizhou Zhenhua E-chem Inc. (688707.SS) is Strong Sell, based on a StockRank of 17/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Guizhou Zhenhua E-chem Inc. in?
Guizhou Zhenhua E-chem Inc. (688707.SS) operates in the Basic Materials sector, specifically the Chemicals industry (China).
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