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 Sep 25

ROCE(HY) Highest at 7.86%
NET SALES(Q) Highest at CNY 652.9 MM

With ROE of 7.26%, it has a very expensive valuation with a 11.15 Price to Book Value

Over the past year, while the stock has generated a return of -3.71%, its profits have risen by 5% ; the PEG ratio of the company is 30.8
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.71% 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.

3.01%

2.89

42.65%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.12%

EBIT Growth (5y)

145.31%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.17

Tax Ratio

13.29%

Dividend Payout Ratio

76.87%

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

154

Industry P/E

Price to Book Value

11.15

EV to EBIT

168.82

EV to EBITDA

133.62

EV to Capital Employed

19.48

EV to Sales

61.10

PEG Ratio

30.79

Dividend Yield

0.48%

ROCE (Latest)

11.54%

ROE (Latest)

7.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (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

10What is working for the Company

ROCE(HY)

Highest at 7.86%

NET SALES(Q)

Highest at CNY 652.9 MM

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.71 times

RAW MATERIAL COST(Y)

Grown by 12.2% (YoY

CASH AND EQV(HY)

Lowest at CNY 8,912.97 MM

DEBT-EQUITY RATIO (HY)

Highest at -43.42 %

OPERATING PROFIT MARGIN(Q)

Lowest at 32.53 %

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

Net Sales

At CNY 652.9 MM has Grown at 56.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 652.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Kuang-Chi Technologies Co., Ltd.

Debtors Turnover Ratio

Lowest at 0.71 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin

Lowest at 32.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 8,912.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -43.42 %

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

Raw Material Cost

Grown by 12.2% (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