INKON Life Technology Co., Ltd. (300143) 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

INKON Life Technology Co., Ltd.

Why is INKON Life Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.62%

The company has been able to generate a Return on Capital Employed (avg) of 5.62% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY -5.29 MM has Grown at -107.83%
INTEREST(HY) At CNY 13.63 MM has Grown at 150.67%
ROCE(HY) Lowest at 2.57%

With ROE of 5.30%, it has a very expensive valuation with a 1.96 Price to Book Value

Over the past year, while the stock has generated a return of -0.47%, its profits have risen by 8.9% ; the PEG ratio of the company is 4.1

Below par performance in long term as well as near term

Along with generating -0.47% 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 Pharmaceuticals & Biotechnology)

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

Is INKON Life Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

INKON Life Technology Co., Ltd.

-5.83%

-0.02

49.51%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.71%

EBIT Growth (5y)

17.97%

EBIT to Interest (avg)

-6.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.71

Tax Ratio

22.16%

Dividend Payout Ratio

20.89%

Pledged Shares

Institutional Holding

ROCE (avg)

5.62%

ROE (avg)

3.79%

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

1.96

EV to EBIT

21.10

EV to EBITDA

14.41

EV to Capital Employed

2.34

EV to Sales

2.15

PEG Ratio

4.13

Dividend Yield

0.25%

ROCE (Latest)

11.08%

ROE (Latest)

5.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

10What is working for the Company

NET SALES(HY)

At CNY 1,024.2 MM has Grown at 38.3%

OPERATING CASH FLOW(Y)

Highest at CNY 359.37 MM

RAW MATERIAL COST(Y)

Fallen by 0.17% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 17.28 times

NET PROFIT(Q)

At CNY 25.76 MM has Grown at 84.69%

-24What is not working for the Company

NET PROFIT(HY)

At CNY -5.29 MM has Grown at -107.83%

INTEREST(HY)

At CNY 13.63 MM has Grown at 150.67%

ROCE(HY)

Lowest at 2.57%

INTEREST COVERAGE RATIO(Q)

Lowest at 682.74

OPERATING PROFIT(Q)

Lowest at CNY 42.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.48 %

Here's what is working for INKON Life Technology Co., Ltd.

Net Sales

At CNY 1,024.2 MM has Grown at 38.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 359.37 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 25.76 MM has Grown at 84.69%

over average net sales of the previous four periods of CNY 13.95 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 17.28 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 0.17% (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 INKON Life Technology Co., Ltd.

Interest

At CNY 13.63 MM has Grown at 150.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 682.74

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 42.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales