Yantai Zhenghai Magnetic Material Co.

300224.SZ

Hardware, Equipment & Parts · Technology

Price

¥11.05

+0.03 (+0.27%)

Market Cap

¥10.28B

Exchange

Shenzhen Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Good

Cash Flow

Strong

Stability

Strong

Valuation

Good

Dividends

Good

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Share count rising — dilution

+4.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 820.2M (2021) → 853.8M (2025)

Winston Score History

The full picture

Yantai Zhenghai Magnetic Material Co., Ltd. is a Chinese company that makes high-performance permanent magnets, specifically neodymium-iron-boron (NdFeB) magnets. These magnets are used in electric vehicle motors, wind turbines, industrial robots, and consumer electronics. The company is one of China's larger producers of sintered NdFeB magnets, which are among the strongest permanent magnets available.

The company earns revenue by selling magnetic materials and finished magnet components to manufacturers, primarily in China but also to international customers in Europe, Japan, and elsewhere. With a market cap around $10.7 billion but thin margins — gross margin of just 12.4% and operating margin of 4.2% — the business is capital-intensive and sensitive to rare earth raw material prices, which it does not fully control. The key growth driver is rising demand for EV motors and wind energy equipment, but the main risk is volatility in neodymium and praseodymium prices, which can quickly squeeze already-narrow profit margins.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-36.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

¥394M/ year

↑ Rising (+25% vs prior year)

5.6% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

53.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥2.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Yantai Zhenghai Magnetic Material Co.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

12.7%

Thin — 12.7% gross margin

Profit after running costs

Operating Margin

4.1%

Thin — 4.1% operating margin

Return on the money invested

ROCE

3.4%

Weak — 3.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+19.1%

Fast-growing sales (+19.1% YoY)

Profit growth

EPS YoY

+206.1%

Earnings growing fast (+206.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

229%

Turns 229% of profit into real cash

Spare cash per sale

FCF Margin

8.3%

Modest free cash flow (8.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.68

Moderate — manageable debt (0.68)

Covers its interest

Interest Cover

11.52x

Comfortably covers interest (11.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

34.9x

Pricey — P/E 34.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+10.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (34.9 → 25.0)

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Dividends

Dividend

Dividend Yield

1.73%

Small dividend — 1.73% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+11.1%

Dividend growing fast (11.1% YoY)

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