Kunming Dianchi Water Treatment Co., Ltd. (3768) 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

Universal Technologies Holdings Ltd.

China Water Affairs Group Ltd.

Guangdong Investment Ltd.

Tianjin Development Holdings Ltd.

Luzhou Xinglu Water (Group) Co., Ltd.

Kunming Dianchi Water Treatment Co., Ltd.

China Water Industry Group Ltd.

EverChina Int'l Holdings Co. Ltd.

Taizhou Water Group Co., Ltd.

Hao Bai International (Cayman) Ltd.

Why is Kunming Dianchi Water Treatment Co., Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -1.91% of over the last 5 years
The company is Net-Debt Free

Negative results in Dec 25

ROCE(HY) Lowest at 3.65%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.24 times
INTEREST COVERAGE RATIO(Q) Lowest at 208.94

With ROE of 4.94%, it has a Very Expensive valuation with a 0.11 Price to Book Value

Over the past year, while the stock has generated a return of 13.79%, its profits have fallen by -10.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kunming Dianchi Water Treatment Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kunming Dianchi Water Treatment Co., Ltd.

13.79%

-0.26

42.08%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.95%

EBIT Growth (5y)

-1.91%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

5.73

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.18

Tax Ratio

16.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.81%

ROE (avg)

7.32%

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

0.11

EV to EBIT

11.38

EV to EBITDA

6.95

EV to Capital Employed

0.52

EV to Sales

3.49

PEG Ratio

Dividend Yield

ROCE (Latest)

4.61%

ROE (Latest)

4.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.98% (YoY

-14What is not working for the Company

ROCE(HY)

Lowest at 3.65%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.24 times

INTEREST COVERAGE RATIO(Q)

Lowest at 208.94

CASH AND EQV(HY)

Lowest at HKD 107.52 MM

INTEREST(Q)

Highest at HKD 200.12 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 109.43 MM

NET PROFIT(Q)

Lowest at HKD 93.02 MM

EPS(Q)

Lowest at HKD 0.07

Here's what is working for Kunming Dianchi Water Treatment Co., Ltd.

Raw Material Cost

Fallen by -18.98% (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 Kunming Dianchi Water Treatment Co., Ltd.

Interest Coverage Ratio

Lowest at 208.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 0.24 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

Interest

Highest at HKD 200.12 MM

in the last five periods and Increased by 63.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Pre-Tax Profit

Lowest at HKD 109.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 93.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

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 107.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at HKD 0.57 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income