Kingsoft Corp. Ltd. (3888) 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 Kingsoft Corp. Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 9.35% over the last 5 years
The company is Net-Debt Free

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CF(Y) Highest at HKD 3,855.06 MM
ROCE(HY) Highest at 834.70 %
DPR(Y) Highest at 35.61 %

With ROE of 16.42%, it has a Attractive valuation with a 1.02 Price to Book Value

Over the past year, while the stock has generated a return of -32.80%, its profits have risen by 66.1% ; the PEG ratio of the company is 0.1

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 0.26% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -32.80% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kingsoft Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Kingsoft Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kingsoft Corp. Ltd.

-32.8%

22.56

41.89%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.35%

EBIT Growth (5y)

-5.28%

EBIT to Interest (avg)

28.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.01

Sales to Capital Employed (avg)

0.30

Tax Ratio

17.69%

Dividend Payout Ratio

8.21%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

342.65%

ROE (avg)

7.12%

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

1.02

EV to EBIT

0.77

EV to EBITDA

0.77

EV to Capital Employed

2.33

EV to Sales

0.10

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

303.13%

ROE (Latest)

16.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Kingsoft Corp. Ltd.

Operating Cash Flow - Annually

Highest at HKD 3,855.06 MM and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Profit After Tax (PAT) - Quarterly

At HKD 480 MM has Grown at 69.2 %

over average PAT of the previous four periods of HKD 283 MM

MOJO Watch

Near term PAT trend is very positive

PAT (HKD MM)

Net Sales - Quarterly

Highest at HKD 2,497 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Profit After Tax (PAT) - Quarterly

Highest at HKD 480 MM.

in the last five periods

MOJO Watch

Near term PAT trend is positive

PAT (HKD MM)

Cash and Cash Equivalents - Half Yearly

Highest at HKD 22,324.57 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (HKD MM)

Inventory Turnover Ratio- Half Yearly

Highest at 547.99 times

in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 10.90 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 35.61 %

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Kingsoft Corp. Ltd.

Non Operating Income - Quarterly

is 41.87 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT (HKD MM)

Non Operating Income - Quarterly

Highest at HKD 392 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (HKD MM)