Guangdong Kingstrong Technology Co., Ltd. (300629) 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

Guangdong Kingstrong Technology Co., Ltd.

Why is Guangdong Kingstrong Technology Co., Ltd. ?

With a growth in Net Sales of 94.94%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 156.29 MM
NET SALES(Q) At CNY 91.47 MM has Grown at 94.94%
PRE-TAX PROFIT(Q) At CNY 17.82 MM has Grown at 197.48%

With ROE of 7.04%, it has a fair valuation with a 2.31 Price to Book Value

Over the past year, while the stock has generated a return of -2.84%, its profits have risen by 78.1% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Guangdong Kingstrong Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Guangdong Kingstrong Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Kingstrong Technology Co., Ltd.

-2.84%

0.19

57.83%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.02%

EBIT Growth (5y)

34.10%

EBIT to Interest (avg)

25.08

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.25

Tax Ratio

12.48%

Dividend Payout Ratio

30.68%

Pledged Shares

Institutional Holding

ROCE (avg)

10.04%

ROE (avg)

7.77%

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

2.31

EV to EBIT

27.10

EV to EBITDA

24.43

EV to Capital Employed

2.44

EV to Sales

9.02

PEG Ratio

0.42

Dividend Yield

0.48%

ROCE (Latest)

9.00%

ROE (Latest)

7.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 156.29 MM

NET SALES(Q)

At CNY 91.47 MM has Grown at 94.94%

PRE-TAX PROFIT(Q)

At CNY 17.82 MM has Grown at 197.48%

NET PROFIT(Q)

At CNY 10.59 MM has Grown at 156.86%

RAW MATERIAL COST(Y)

Fallen by -28.94% (YoY

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.19 times

Here's what is working for Guangdong Kingstrong Technology Co., Ltd.

Net Sales

At CNY 91.47 MM has Grown at 94.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 156.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 17.82 MM has Grown at 197.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.59 MM has Grown at 156.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -28.94% (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 Guangdong Kingstrong Technology Co., Ltd.

Inventory Turnover Ratio

Lowest at 1.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio