Kangda New Materials (Group) Co., Ltd. (002669) 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

Kangda New Materials (Group) Co., Ltd.

Why is Kangda New Materials (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.49%

The company has been able to generate a Return on Capital Employed (avg) of 2.49% signifying low profitability per unit of total capital (equity and debt)

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 24.55% and Operating profit at -165.00% 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 2.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 24.55% and Operating profit at -165.00% over the last 5 years

With a growth in Operating Profit of 319.37%, the company declared Very Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 185.02 MM
NET SALES(Q) At CNY 872.17 MM has Grown at 64.19%
RAW MATERIAL COST(Y) Fallen by -29.64% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 40.84%, its profits have risen by 88%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kangda New Materials (Group) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Kangda New Materials (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kangda New Materials (Group) Co., Ltd.

-100.0%

1.47

44.41%

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)

24.55%

EBIT Growth (5y)

-165.00%

EBIT to Interest (avg)

3.28

Debt to EBITDA (avg)

17.29

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.54

Tax Ratio

3.03%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.49%

ROE (avg)

2.18%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.30

EV to EBIT

-267.31

EV to EBITDA

34.70

EV to Capital Employed

1.15

EV to Sales

1.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.43%

ROE (Latest)

-0.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 185.02 MM

NET SALES(Q)

At CNY 872.17 MM has Grown at 64.19%

RAW MATERIAL COST(Y)

Fallen by -29.64% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.05%

PRE-TAX PROFIT(Q)

Highest at CNY 8.59 MM

NET PROFIT(Q)

Highest at CNY 6.37 MM

EPS(Q)

Highest at CNY 0.02

-2What is not working for the Company

ROCE(HY)

Lowest at -7.57%

Here's what is working for Kangda New Materials (Group) Co., Ltd.

Operating Cash Flow

Highest at CNY 185.02 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)

Net Sales

At CNY 872.17 MM has Grown at 64.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 8.59 MM has Grown at 128.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.37 MM has Grown at 125.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 8.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 6.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 4.05%

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 -29.64% (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 Kangda New Materials (Group) Co., Ltd.

Non Operating Income

Highest at CNY 0.94 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income