Kaishan Group Co. Ltd. (300257) 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

Kaishan Group Co. Ltd.

Why is Kaishan 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 9.54% and Operating profit at 16.65% 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 6.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.54% and Operating profit at 16.65% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(9M) At CNY 277.75 MM has Grown at 67.33%
INTEREST COVERAGE RATIO(Q) Lowest at 186.97
NET PROFIT(9M) At CNY 231.13 MM has Grown at -19.71%

With ROE of 5.18%, it has a fair valuation with a 2.22 Price to Book Value

Over the past year, while the stock has generated a return of 65.23%, its profits have fallen by -11.5%
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 65.23% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kaishan Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Kaishan Group Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kaishan Group Co. Ltd.

-100.0%

1.19

43.02%

China Shanghai Composite

15.19%

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)

9.54%

EBIT Growth (5y)

16.65%

EBIT to Interest (avg)

3.52

Debt to EBITDA (avg)

5.71

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.31

Tax Ratio

12.51%

Dividend Payout Ratio

31.01%

Pledged Shares

Institutional Holding

ROCE (avg)

5.30%

ROE (avg)

6.46%

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

2.22

EV to EBIT

29.59

EV to EBITDA

18.07

EV to Capital Employed

1.66

EV to Sales

4.62

PEG Ratio

Dividend Yield

0.68%

ROCE (Latest)

5.60%

ROE (Latest)

5.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,065.7 MM

RAW MATERIAL COST(Y)

Fallen by -13.78% (YoY

CASH AND EQV(HY)

Highest at CNY 6,529.53 MM

-15What is not working for the Company

INTEREST(9M)

At CNY 277.75 MM has Grown at 67.33%

INTEREST COVERAGE RATIO(Q)

Lowest at 186.97

NET PROFIT(9M)

At CNY 231.13 MM has Grown at -19.71%

OPERATING PROFIT(Q)

Lowest at CNY 182.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.9 %

Here's what is working for Kaishan Group Co. Ltd.

Operating Cash Flow

Highest at CNY 1,065.7 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)

Cash and Eqv

Highest at CNY 6,529.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -13.78% (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 Kaishan Group Co. Ltd.

Interest

At CNY 191.89 MM has Grown at 77.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 186.97 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

Net Profit

At CNY 231.13 MM has Grown at -19.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 182.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales