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

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 22.26% and Operating profit at -53.05% 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 22.26% and Operating profit at -53.05% over the last 5 years

With a growth in Net Sales of 82.7%, the company declared Outstanding results in Sep 25

PRE-TAX PROFIT(Q) At CNY 38.97 MM has Grown at 243.27%
NET PROFIT(Q) At CNY 32.87 MM has Grown at 264.65%
INVENTORY TURNOVER RATIO(HY) Highest at 5.72 times

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 29.66%, 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.

31.89%

0.98

46.98%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.26%

EBIT Growth (5y)

-53.05%

EBIT to Interest (avg)

3.28

Debt to EBITDA (avg)

17.29

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.57

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

1.57

EV to EBIT

-300.26

EV to EBITDA

38.98

EV to Capital Employed

1.29

EV to Sales

1.71

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

30What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 38.97 MM has Grown at 243.27%

NET PROFIT(Q)

At CNY 32.87 MM has Grown at 264.65%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.72 times

NET SALES(Q)

Highest at CNY 1,491.71 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -352.18 MM

RAW MATERIAL COST(Y)

Grown by 17.91% (YoY

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

Pre-Tax Profit

At CNY 38.97 MM has Grown at 243.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.87 MM has Grown at 264.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,491.71 MM has Grown at 82.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 1,491.71 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.72 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 Kangda New Materials (Group) Co., Ltd.

Operating Cash Flow

Lowest at CNY -352.18 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 17.91% (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 0.95 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income