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Yantai Zhenghai Magnetic Material Co.

300224.SZ
50
Hardware, Equipment & Parts · Technology
Price
¥11.41
-0.16 (-1.38%)
Market Cap
¥10.62B
Exchange
Shenzhen Stock Exchange
Winston Score
50
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 9, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Weak
4/30
Growth
Good
12/20
Cash Flow
Strong
8/10
Stability
Strong
8/10
Valuation
Good
5/10
Ownership
Good
10/15
Dividends
Good
3/5

50 of 100 counted points = Winston Score 50.

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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

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

Revenue Growth

+30.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+85.1% YoY

YoY Growth Rate

EPS growth accelerating

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

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~5 years

¥2.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

¥2.4B cash & investments at current burn rate

Revenue accelerating

Yantai Zhenghai Magnetic Material Co. grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

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
11.9%
Thin — 11.9% gross margin
Profit after running costs
Operating Margin
5.0%
Thin — 5.0% operating margin
Return on the money invested
ROCE
4.2%
Weak — 4.2% 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
+22.6%
Fast-growing sales (+22.6% YoY)
Profit growth
EPS YoY
+430.6%
Earnings growing fast (+430.6% YoY)

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

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
178%
Turns 178% of profit into real cash
Spare cash per sale
FCF Margin
6.9%
Modest free cash flow (6.9%)

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
0.69
Moderate — manageable debt (0.69)
Covers its interest
Interest Cover
84.49x
Comfortably covers interest (84.5x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
31.6x
Pricey — P/E 31.6

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

Cheaper or dearer next year
P/E vs Forward
+5.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (31.6 → 26.4)

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Dividends

Dividend
Dividend Yield
1.67%
Small dividend — 1.67% 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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