Hunan Kaimeite Gases Co., Ltd. (002549) 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

Hunan Kaimeite Gases Co., Ltd.

Why is Hunan Kaimeite Gases Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.85%

The company has been able to generate a Return on Capital Employed (avg) of 6.85% 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 5.04% and Operating profit at -6.46% over the last 5 years

With a fall in Net Sales of -5.66%, the company declared Very Negative results in Mar 26

The company has declared negative results in Mar 26 after 4 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY 121.99 MM
INTEREST COVERAGE RATIO(Q) Lowest at 128.68
PRE-TAX PROFIT(Q) At CNY 8.08 MM has Fallen at -76.5%

With ROE of 2.78%, it has a expensive valuation with a 6.72 Price to Book Value

Over the past year, while the stock has generated a return of 76.47%, its profits have risen by 216.9% ; the PEG ratio of the company is 1.1

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 Specialty Chemicals)

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

Is Hunan Kaimeite Gases Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Kaimeite Gases Co., Ltd.

76.47%

3.36

65.01%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.04%

EBIT Growth (5y)

-6.46%

EBIT to Interest (avg)

1.95

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.22

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

50.71%

Pledged Shares

Institutional Holding

ROCE (avg)

6.85%

ROE (avg)

6.91%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

242

Industry P/E

Price to Book Value

6.72

EV to EBIT

506.55

EV to EBITDA

131.74

EV to Capital Employed

7.96

EV to Sales

21.24

PEG Ratio

1.12

Dividend Yield

ROCE (Latest)

1.57%

ROE (Latest)

2.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 8.23 times

-25What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 121.99 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 128.68

PRE-TAX PROFIT(Q)

At CNY 8.08 MM has Fallen at -76.5%

NET PROFIT(Q)

At CNY 10.36 MM has Fallen at -67.12%

OPERATING PROFIT(Q)

Lowest at CNY 3.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.35 %

RAW MATERIAL COST(Y)

Grown by 9.2% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -11.55 %

Here's what is working for Hunan Kaimeite Gases Co., Ltd.

Inventory Turnover Ratio

Highest at 8.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Hunan Kaimeite Gases Co., Ltd.

Interest Coverage Ratio

Lowest at 128.68 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 8.08 MM has Fallen at -76.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.36 MM has Fallen at -67.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 121.99 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 3.57 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.35 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -11.55 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.86 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income