Hubei Kailong Chemical Group Co., Ltd. (002783) 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

Hubei Kailong Chemical Group Co., Ltd.

Why is Hubei Kailong Chemical Group Co., Ltd. ?

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 17.10% and Operating profit at 20.91% 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 9.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.10% and Operating profit at 20.91% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 464.11
OPERATING PROFIT(Q) Lowest at CNY 93.2 MM
OPERATING PROFIT MARGIN(Q) Lowest at 12.34 %

With ROE of 12.77%, it has a expensive valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of 14.62%, its profits have risen by 64.7% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hubei Kailong Chemical Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Hubei Kailong Chemical Group Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Kailong Chemical Group Co., Ltd.

3.95%

0.91

33.75%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.10%

EBIT Growth (5y)

20.91%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

3.75

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.74

Tax Ratio

14.02%

Dividend Payout Ratio

31.29%

Pledged Shares

Institutional Holding

ROCE (avg)

7.44%

ROE (avg)

9.56%

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

1.22

EV to EBIT

10.84

EV to EBITDA

6.06

EV to Capital Employed

1.13

EV to Sales

1.31

PEG Ratio

0.15

Dividend Yield

1.02%

ROCE (Latest)

10.44%

ROE (Latest)

12.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

NET PROFIT(HY)

At CNY 74.73 MM has Grown at 130.37%

RAW MATERIAL COST(Y)

Fallen by -28.2% (YoY

CASH AND EQV(HY)

Highest at CNY 2,223.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at 65.34 %

PRE-TAX PROFIT(Q)

At CNY 79.16 MM has Grown at 73.41%

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 464.11

OPERATING PROFIT(Q)

Lowest at CNY 93.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.34 %

Here's what is working for Hubei Kailong Chemical Group Co., Ltd.

Net Profit

At CNY 74.73 MM has Grown at 130.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 79.16 MM has Grown at 73.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,223.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 65.34 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -28.2% (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 Hubei Kailong Chemical Group Co., Ltd.

Interest Coverage Ratio

Lowest at 464.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 93.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales