Kuangda Technology Group Co., Ltd. (002516) 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

Kuangda Technology Group Co., Ltd.

Why is Kuangda Technology Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.82% and Operating profit at 1.26% over the last 5 years

With a growth in Net Profit of 12.05%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 376.31 MM
ROCE(HY) Highest at 5.16%
RAW MATERIAL COST(Y) Fallen by -5.79% (YoY)

With ROE of 4.87%, it has a fair valuation with a 2.24 Price to Book Value

Over the past year, while the stock has generated a return of 22.97%, its profits have risen by 8.8%
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 22.97% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kuangda Technology Group 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 Kuangda Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kuangda Technology Group Co., Ltd.

22.97%

1.83

34.61%

China Shanghai Composite

21.31%

1.56

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.82%

EBIT Growth (5y)

1.26%

EBIT to Interest (avg)

83.20

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.57

Tax Ratio

17.76%

Dividend Payout Ratio

63.39%

Pledged Shares

Institutional Holding

ROCE (avg)

7.55%

ROE (avg)

5.13%

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

2.24

EV to EBIT

28.40

EV to EBITDA

20.29

EV to Capital Employed

2.77

EV to Sales

3.15

PEG Ratio

Dividend Yield

0.87%

ROCE (Latest)

9.75%

ROE (Latest)

4.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 376.31 MM

ROCE(HY)

Highest at 5.16%

RAW MATERIAL COST(Y)

Fallen by -5.79% (YoY

CASH AND EQV(HY)

Highest at CNY 2,292.25 MM

DEBT-EQUITY RATIO (HY)

Lowest at -28.7 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.95 times

PRE-TAX PROFIT(Q)

Highest at CNY 75.44 MM

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 72.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.48 %

Here's what is working for Kuangda Technology Group Co., Ltd.

Operating Cash Flow

Highest at CNY 376.31 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)

Pre-Tax Profit

Highest at CNY 75.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,292.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -28.7 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.79% (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 Kuangda Technology Group Co., Ltd.

Operating Profit

Lowest at CNY 72.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales