ScoreWhy is Guangdong Kitech New Material Holding Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.05%
- The company has been able to generate a Return on Capital Employed (avg) of 1.05% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 4.11% and Operating profit at 2.87% over the last 5 years
3
Flat results in Mar 26
- INTEREST(HY) At CNY 1.86 MM has Grown at 146.49%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,296.94
- OPERATING PROFIT(Q) Lowest at CNY 8.73 MM
4
With ROE of 3.49%, it has a expensive valuation with a 4.35 Price to Book Value
- Over the past year, while the stock has generated a return of -34.69%, its profits have risen by 137% ; the PEG ratio of the company is 0.9
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.69% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Guangdong Kitech New Material Holding Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Guangdong Kitech New Material Holding Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong Kitech New Material Holding Co., Ltd.
-46.97%
1.68
53.80%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.11%
EBIT Growth (5y)
2.87%
EBIT to Interest (avg)
5.51
Debt to EBITDA (avg)
0.26
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
0.46
Tax Ratio
4.44%
Dividend Payout Ratio
83.01%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.53%
ROE (avg)
2.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
111
Industry P/E
Price to Book Value
3.88
EV to EBIT
119.52
EV to EBITDA
50.40
EV to Capital Employed
3.98
EV to Sales
6.50
PEG Ratio
0.81
Dividend Yield
0.17%
ROCE (Latest)
3.33%
ROE (Latest)
3.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
ROCE(HY)
Highest at 3.45%
RAW MATERIAL COST(Y)
Fallen by -8.37% (YoY
CASH AND EQV(HY)
Highest at CNY 626.69 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -35.43 %
DEBTORS TURNOVER RATIO(HY)
Highest at 3.15 times
NET SALES(Q)
Highest at CNY 105.11 MM
PRE-TAX PROFIT(Q)
Highest at CNY 10.41 MM
NET PROFIT(Q)
Highest at CNY 8.65 MM
EPS(Q)
Highest at CNY 0.1
-13What is not working for the Company
INTEREST(HY)
At CNY 1.24 MM has Grown at 44.36%
INTEREST COVERAGE RATIO(Q)
Lowest at 193.49
OPERATING PROFIT(Q)
Lowest at CNY 1.1 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.05 %
Here's what is working for Guangdong Kitech New Material Holding Co., Ltd.
Net Sales
Highest at CNY 105.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 10.41 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 10.41 MM has Grown at 78.3%
over average net sales of the previous four periods of CNY 5.84 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 8.65 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.1
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 626.69 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -35.43 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 3.15 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -8.37% (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 Kitech New Material Holding Co., Ltd.
Interest
At CNY 1.24 MM has Grown at 44.36%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 193.49
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 1.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 1.05 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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