Kuang-Chi Technologies Co., Ltd. (002625) 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

Kuang-Chi Technologies Co., Ltd.

Why is Kuang-Chi Technologies Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 8.25%

The company has been able to generate a Return on Capital Employed (avg) of 8.25% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 556.48 MM
RAW MATERIAL COST(Y) Fallen by 1.53% (YoY)
NET SALES(Q) At CNY 522.35 MM has Grown at 40.28%

With ROE of 7.27%, it has a expensive valuation with a 7.73 Price to Book Value

Over the past year, while the stock has generated a return of -17.31%, its profits have risen by 6.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 21.43% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.31% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kuang-Chi Technologies Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Kuang-Chi Technologies Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kuang-Chi Technologies Co., Ltd.

-17.31%

1.82

43.79%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.53%

EBIT Growth (5y)

114.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.18

Tax Ratio

13.29%

Dividend Payout Ratio

10.96%

Pledged Shares

Institutional Holding

ROCE (avg)

8.25%

ROE (avg)

5.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

106

Industry P/E

Price to Book Value

7.73

EV to EBIT

100.93

EV to EBITDA

83.86

EV to Capital Employed

12.89

EV to Sales

32.49

PEG Ratio

Dividend Yield

ROCE (Latest)

12.77%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 556.48 MM

RAW MATERIAL COST(Y)

Fallen by 1.53% (YoY

NET SALES(Q)

At CNY 522.35 MM has Grown at 40.28%

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -43.21 %

OPERATING PROFIT MARGIN(Q)

Lowest at 32.02 %

Here's what is working for Kuang-Chi Technologies Co., Ltd.

Operating Cash Flow

Highest at CNY 556.48 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 (CNY MM)

Net Sales

At CNY 522.35 MM has Grown at 40.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by 1.53% (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 Kuang-Chi Technologies Co., Ltd.

Operating Profit Margin

Lowest at 32.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -43.21 %

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