Keck Seng Investments (Hong Kong) Ltd. (184) 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

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Why is Keck Seng Investments (Hong Kong) Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 2.60% 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 Capital Employed (avg) of 3.59% signifying low profitability per unit of total capital (equity and debt)

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.99% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.54% returns

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 Hotels & Resorts)

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

Is Keck Seng Investments (Hong Kong) Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Keck Seng Investments (Hong Kong) Ltd.

-100.0%

9.18

32.32%

Hang Seng Hong Kong

8.25%

0.36

24.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.60%

EBIT Growth (5y)

32.26%

EBIT to Interest (avg)

-1.35

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.28

Tax Ratio

25.38%

Dividend Payout Ratio

15.96%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.59%

ROE (avg)

3.74%

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

0.26

EV to EBIT

2.57

EV to EBITDA

1.70

EV to Capital Employed

0.19

EV to Sales

0.34

PEG Ratio

0.09

Dividend Yield

0.80%

ROCE (Latest)

7.35%

ROE (Latest)

8.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 647.04 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 92.59%

RAW MATERIAL COST(Y)

Fallen by -0.05% (YoY

-10What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.4 times

CASH AND EQV(HY)

Lowest at HKD 1,344.4 MM

NET SALES(Q)

Lowest at HKD 772.57 MM

OPERATING PROFIT(Q)

Lowest at HKD 113.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.67 %

PRE-TAX PROFIT(Q)

Fallen at -57.38%

NET PROFIT(Q)

Lowest at HKD 30.16 MM

EPS(Q)

Lowest at HKD 0.03

Here's what is working for Keck Seng Investments (Hong Kong) Ltd.

Operating Cash Flow

Highest at HKD 647.04 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 (HKD MM)

Dividend Payout Ratio

Highest at 92.59%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.05% (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 Keck Seng Investments (Hong Kong) Ltd.

Inventory Turnover Ratio

Lowest at 3.4 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at HKD 772.57 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 113.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 14.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -57.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 30.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -75.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 1,344.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at HKD 1.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income