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

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 15.98% and Operating profit at 20.22% 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 15.98% and Operating profit at 20.22% over the last 5 years

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 460.95
DEBTORS TURNOVER RATIO(HY) Lowest at 2.59 times
NET SALES(Q) Fallen at -11.05%

With ROE of 12.77%, it has a expensive valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of 12.35%, 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 0.7

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, Medium Return

Absolute

Risk Adjusted

Volatility

Hubei Kailong Chemical Group Co., Ltd.

10.55%

0.66

33.09%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.98%

EBIT Growth (5y)

20.22%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

3.75

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.73

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

1.88

EV to EBIT

14.62

EV to EBITDA

8.17

EV to Capital Employed

1.53

EV to Sales

1.77

PEG Ratio

0.23

Dividend Yield

0.66%

ROCE (Latest)

10.44%

ROE (Latest)

12.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 494.7 MM

DEBT-EQUITY RATIO (HY)

Lowest at 61.26 %

RAW MATERIAL COST(Y)

Fallen by -16.13% (YoY

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 460.95

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.59 times

NET SALES(Q)

Fallen at -11.05%

OPERATING PROFIT(Q)

Lowest at CNY 91.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11 %

NET PROFIT(Q)

Lowest at CNY 28.19 MM

EPS(Q)

Lowest at CNY 0.06

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

Operating Cash Flow

Highest at CNY 494.7 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)

Debt-Equity Ratio

Lowest at 61.26 % and Grown

In each half year 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 -16.13% (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 460.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 28.19 MM has Fallen at -39.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Fallen at -11.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 91.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 28.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio