Guangdong Kitech New Material Holding Co., Ltd. () 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 Kitech New Material Holding Co., Ltd.

Why is Guangdong Kitech New Material Holding Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 7.49% and Operating profit at 13.51% over the last 5 years

With a growth in Net Profit of 63.19%, the company declared Very Positive results in Sep 25

NET PROFIT(HY) At CNY 8.72 MM has Grown at 316.57%
OPERATING CASH FLOW(Y) Highest at CNY 65.31 MM
ROCE(HY) Highest at 2.54%

With ROE of 2.18%, it has a fair valuation with a 6.42 Price to Book Value

Over the past year, while the stock has generated a return of 49.82%, its profits have risen by 88% ; the PEG ratio of the company is 3.4

Market Beating Performance

The stock has generated a return of 49.82% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

How 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.

49.82%

1.56

74.33%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.49%

EBIT Growth (5y)

13.51%

EBIT to Interest (avg)

4.66

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.44

Tax Ratio

3.60%

Dividend Payout Ratio

144.51%

Pledged Shares

Institutional Holding

ROCE (avg)

1.05%

ROE (avg)

2.05%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

295

Industry P/E

Price to Book Value

6.42

EV to EBIT

582.74

EV to EBITDA

110.08

EV to Capital Employed

6.20

EV to Sales

11.11

PEG Ratio

3.36

Dividend Yield

ROCE (Latest)

1.06%

ROE (Latest)

2.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

15What is working for the Company

NET PROFIT(HY)

At CNY 8.72 MM has Grown at 316.57%

OPERATING CASH FLOW(Y)

Highest at CNY 65.31 MM

ROCE(HY)

Highest at 2.54%

RAW MATERIAL COST(Y)

Fallen by -52.07% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.33 times

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.64 times

OPERATING PROFIT(Q)

Lowest at CNY 2.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.62 %

Here's what is working for Guangdong Kitech New Material Holding Co., Ltd.

Net Profit

At CNY 8.72 MM has Grown at 316.57%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 65.31 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)

Inventory Turnover Ratio

Highest at 5.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -52.07% (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.

Operating Profit

Lowest at CNY 2.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio