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

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 7.86% and Operating profit at -24.54% 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 7.86% and Operating profit at -24.54% over the last 5 years

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

ROCE(HY) Lowest at 1.86%
CASH AND EQV(HY) Lowest at CNY 105.75 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 0.53 times

With ROE of 2.36%, it has a very expensive valuation with a 6.46 Price to Book Value

Over the past year, while the stock has generated a return of 2.05%, 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.

21.78%

-0.79

32.41%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.86%

EBIT Growth (5y)

-24.54%

EBIT to Interest (avg)

5.66

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

0.24

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

6.46

EV to EBIT

309.71

EV to EBITDA

69.55

EV to Capital Employed

3.53

EV to Sales

14.69

PEG Ratio

Dividend Yield

ROCE (Latest)

1.14%

ROE (Latest)

2.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 14.7 MM has Grown at 9,524.96%

RAW MATERIAL COST(Y)

Fallen by -28.03% (YoY

NET PROFIT(9M)

Higher at CNY 61.07 MM

-6What is not working for the Company

ROCE(HY)

Lowest at 1.86%

CASH AND EQV(HY)

Lowest at CNY 105.75 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.53 times

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

Pre-Tax Profit

At CNY 14.7 MM has Grown at 9,524.96%

over average net sales of the previous four periods of CNY -0.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Higher at CNY 61.07 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -28.03% (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.

Cash and Eqv

Lowest at CNY 105.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio