Changzhou Kaidi Electrical, Inc. (605288) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Changzhou Kaidi Electrical, Inc.

Why is Changzhou Kaidi Electrical, Inc. ?

Poor Management Efficiency with a low ROCE of 7.98%

The company has been able to generate a Return on Capital Employed (avg) of 7.98% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.70% and Operating profit at -27.97% over the last 5 years

With a fall in Net Sales of -3.58%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Sep 24 after 4 consecutive negative quarters
NET PROFIT(9M) At CNY 48.55 MM has Grown at -37.24%
NET SALES(Q) At CNY 273.07 MM has Fallen at -17.55%
INTEREST(HY) At CNY 0.83 MM has Grown at 8.77%

With ROE of 2.81%, it has a expensive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of 181.69%, its profits have fallen by -45%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Changzhou Kaidi Electrical, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Changzhou Kaidi Electrical, Inc.

181.69%

3.67

58.37%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.70%

EBIT Growth (5y)

-27.97%

EBIT to Interest (avg)

81.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.51

Tax Ratio

13.01%

Dividend Payout Ratio

30.35%

Pledged Shares

Institutional Holding

ROCE (avg)

7.98%

ROE (avg)

4.96%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.81

EV to EBIT

24.69

EV to EBITDA

7.30

EV to Capital Employed

0.70

EV to Sales

0.74

PEG Ratio

Dividend Yield

0.37%

ROCE (Latest)

2.84%

ROE (Latest)

2.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

NET SALES(HY)

At CNY 712.29 MM has Grown at 24.61%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.41%

RAW MATERIAL COST(Y)

Fallen by -3.43% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.24%

-17What is not working for the Company

NET PROFIT(9M)

At CNY 48.55 MM has Grown at -37.24%

NET SALES(Q)

At CNY 273.07 MM has Fallen at -17.55%

INTEREST(HY)

At CNY 0.83 MM has Grown at 8.77%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.75 %

OPERATING PROFIT(Q)

Lowest at CNY 7.5 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 17.35 MM

Here's what is working for Changzhou Kaidi Electrical, Inc.

Inventory Turnover Ratio

Highest at 3.41% 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

Debtors Turnover Ratio

Highest at 5.24%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.43% (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 Changzhou Kaidi Electrical, Inc.

Net Sales

At CNY 273.07 MM has Fallen at -17.55%

over average net sales of the previous four periods of CNY 331.18 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 48.55 MM has Grown at -37.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at 2.75 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At CNY 0.83 MM has Grown at 8.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 7.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 17.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 17.35 MM has Fallen at -32.59%

over average net sales of the previous four periods of CNY 25.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Non Operating Income

Highest at CNY 0.58 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income