Kehua Holdings Co., Ltd. (603161) 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

Kehua Holdings Co., Ltd.

Why is Kehua Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.73%

The company has been able to generate a Return on Capital Employed (avg) of 3.73% 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 7.28% and Operating profit at 19.40% 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 4.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.28% and Operating profit at 19.40% over the last 5 years

Flat results in Sep 25

NET PROFIT(9M) At CNY 69.27 MM has Grown at -26.1%
RAW MATERIAL COST(Y) Grown by 12.74% (YoY)
OPERATING PROFIT(Q) Lowest at CNY 26.66 MM

With ROE of 4.88%, it has a fair valuation with a 1.76 Price to Book Value

Over the past year, while the stock has generated a return of 40.00%, its profits have fallen by -43.7%
At the current price, the company has a high dividend yield of 0.9

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 Auto Components & Equipments)

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

Is Kehua Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kehua Holdings Co., Ltd.

17.46%

1.18

39.12%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.54%

EBIT Growth (5y)

-6.54%

EBIT to Interest (avg)

1.43

Debt to EBITDA (avg)

5.29

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.00

Tax Ratio

9.52%

Dividend Payout Ratio

32.49%

Pledged Shares

Institutional Holding

ROCE (avg)

3.73%

ROE (avg)

4.80%

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

1.84

EV to EBIT

46.64

EV to EBITDA

15.42

EV to Capital Employed

1.60

EV to Sales

1.54

PEG Ratio

Dividend Yield

0.79%

ROCE (Latest)

3.44%

ROE (Latest)

4.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 39.31 %

RAW MATERIAL COST(Y)

Fallen by -19.73% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.8 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 294.64 MM

ROCE(HY)

Lowest at 5.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 542.55

NET SALES(Q)

Lowest at CNY 499.13 MM

OPERATING PROFIT(Q)

Lowest at CNY 22.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.54 %

EPS(Q)

Lowest at CNY 0.08

Here's what is working for Kehua Holdings Co., Ltd.

Debt-Equity Ratio

Lowest at 39.31 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.8 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 -19.73% (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 Kehua Holdings Co., Ltd.

Interest Coverage Ratio

Lowest at 542.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 294.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 499.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 499.13 MM has Fallen at -10.61%

over average net sales of the previous four periods of CNY 558.38 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 22.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)