Fujian Kuncai Material Technology Co., Ltd. (603826) 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

Fujian Kuncai Material Technology Co., Ltd.

Why is Fujian Kuncai Material Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.66%

The company has been able to generate a Return on Capital Employed (avg) of 4.66% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.92% and Operating profit at -20.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.92% and Operating profit at -20.65% over the last 5 years

The company has declared Negative results for the last 17 consecutive quarters

NET PROFIT(HY) At CNY -1.39 MM has Grown at -103.56%
OPERATING CASH FLOW(Y) Lowest at CNY -148.5 MM
ROCE(HY) Lowest at 2.03%

With ROE of 2.36%, it has a very expensive valuation with a 6.45 Price to Book Value

Over the past year, while the stock has generated a return of -23.60%, its profits have fallen by -52.6%

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 Specialty Chemicals)

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

Is Fujian Kuncai Material Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fujian Kuncai Material Technology Co., Ltd.

-22.48%

-1.35

26.52%

China Shanghai Composite

15.19%

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)

8.92%

EBIT Growth (5y)

-20.65%

EBIT to Interest (avg)

5.66

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

0.23

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.66%

ROE (avg)

5.99%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

274

Industry P/E

Price to Book Value

6.45

EV to EBIT

309.15

EV to EBITDA

69.42

EV to Capital Employed

3.53

EV to Sales

14.66

PEG Ratio

Dividend Yield

ROCE (Latest)

1.14%

ROE (Latest)

2.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 25.32 MM has Grown at 2,833.6%

RAW MATERIAL COST(Y)

Fallen by -12.45% (YoY

NET PROFIT(Q)

Highest at CNY 23.85 MM

-19What is not working for the Company

NET PROFIT(HY)

At CNY -1.39 MM has Grown at -103.56%

OPERATING CASH FLOW(Y)

Lowest at CNY -148.5 MM

ROCE(HY)

Lowest at 2.03%

INTEREST(Q)

At CNY 15.54 MM has Grown at 56.87%

CASH AND EQV(HY)

Lowest at CNY 84.19 MM

DEBT-EQUITY RATIO (HY)

Highest at 107.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.53%

Here's what is working for Fujian Kuncai Material Technology Co., Ltd.

Pre-Tax Profit

At CNY 25.32 MM has Grown at 2,833.6%

over average net sales of the previous four periods of CNY 0.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 23.85 MM has Grown at 171.48%

over average net sales of the previous four periods of CNY 8.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Highest at CNY 23.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -12.45% (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 Fujian Kuncai Material Technology Co., Ltd.

Interest

At CNY 15.54 MM has Grown at 56.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -148.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 84.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 107.04 %

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

Inventory Turnover Ratio

Lowest at 0.53%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio