Kinetic Development Group Ltd. (1277) 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

Shougang Fushan Resources Group Ltd.

Kinetic Development Group Ltd.

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E-Commodities Holdings Ltd.

Perennial Energy Holdings Ltd.

China Coal Energy Co., Ltd.

Yankuang Energy Group Co., Ltd.

China Qinfa Group Ltd.

Hidili Industry International Development Ltd.

Henan JinMa Energy Co., Ltd.

China Shenhua Energy Co., Ltd.

Why is Kinetic Development Group Ltd. ?

High Management Efficiency with a high ROE of 36.11%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 14.76% and Operating profit at 18.20%

Negative results in Jun 25

ROCE(HY) Lowest at 19.63%
RAW MATERIAL COST(Y) Grown by 15.16% (YoY)
CASH AND EQV(HY) Lowest at HKD 804.35 MM

With ROE of 25.44%, it has a Attractive valuation with a 1.16 Price to Book Value

Over the past year, while the stock has generated a return of 70.16%, its profits have fallen by -0.5%

Consistent Returns over the last 3 years

Along with generating 70.16% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kinetic Development Group Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Kinetic Development Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kinetic Development Group Ltd.

-100.0%

2.83

45.63%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.76%

EBIT Growth (5y)

18.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.80

Tax Ratio

24.07%

Dividend Payout Ratio

31.28%

Pledged Shares

Institutional Holding

ROCE (avg)

73.57%

ROE (avg)

36.11%

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

1.16

EV to EBIT

3.42

EV to EBITDA

3.17

EV to Capital Employed

1.16

EV to Sales

1.63

PEG Ratio

Dividend Yield

5.00%

ROCE (Latest)

33.84%

ROE (Latest)

25.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 69.64%

-11What is not working for the Company

ROCE(HY)

Lowest at 19.63%

RAW MATERIAL COST(Y)

Grown by 15.16% (YoY

CASH AND EQV(HY)

Lowest at HKD 804.35 MM

DEBT-EQUITY RATIO (HY)

Highest at 3.22 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.21 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.98 times

OPERATING PROFIT MARGIN(Q)

Lowest at 39.1 %

EPS(Q)

Lowest at HKD 0.07

Here's what is working for Kinetic Development Group Ltd.

Dividend Payout Ratio

Highest at 69.64%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 135 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 135 MM has Grown at 18.36%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Kinetic Development Group Ltd.

Operating Profit Margin

Lowest at 39.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at HKD 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 804.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 3.22 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 17.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 15.16% (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