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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.08% and Operating profit at 5.41% over the last 5 years
The company is Net-Debt Free
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 8.08% and Operating profit at 5.41% over the last 5 years

Negative results in Mar 26

NET PROFIT(Q) At CNY 9.65 MM has Fallen at -73.2%
ROCE(HY) Lowest at 4.44%
INTEREST COVERAGE RATIO(Q) Lowest at 248.93

Below par performance in long term as well as near term

Along with generating -9.76% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Kailong Chemical Group Co., Ltd.

-14.42%

-0.02

35.23%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.08%

EBIT Growth (5y)

5.41%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

3.75

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.71

Tax Ratio

14.02%

Dividend Payout Ratio

34.64%

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

0.95

EV to EBIT

12.15

EV to EBITDA

6.56

EV to Capital Employed

0.97

EV to Sales

1.15

PEG Ratio

Dividend Yield

1.27%

ROCE (Latest)

7.96%

ROE (Latest)

7.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 58.47 %

RAW MATERIAL COST(Y)

Fallen by -11.23% (YoY

CASH AND EQV(HY)

Highest at CNY 2,229.44 MM

-27What is not working for the Company

NET PROFIT(Q)

At CNY 9.65 MM has Fallen at -73.2%

ROCE(HY)

Lowest at 4.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 248.93

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.44 times

NET SALES(Q)

Lowest at CNY 715.33 MM

OPERATING PROFIT(Q)

Lowest at CNY 41.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.79 %

PRE-TAX PROFIT(Q)

Lowest at CNY 34.66 MM

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

Debt-Equity Ratio

Lowest at 58.47 % 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

Cash and Eqv

Highest at CNY 2,229.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.23% (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.

Pre-Tax Profit

At CNY 34.66 MM has Fallen at -56.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.65 MM has Fallen at -73.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 248.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 715.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 41.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 34.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio