Kunshan Asia Aroma Corp., Ltd. () 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

Kunshan Asia Aroma Corp., Ltd.

Why is Kunshan Asia Aroma Corp., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.85% and Operating profit at -16.28% over the last 5 years

The company declared very positive results in Mar'25 after negative results in Dec'24

ROCE(HY) Highest at 7.8%
INVENTORY TURNOVER RATIO(HY) Highest at 1.52 times
NET PROFIT(9M) Higher at CNY 120.93 MM

With ROE of 7.43%, it has a very attractive valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of -24.36%, its profits have risen by 96.9%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.01% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.36% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kunshan Asia Aroma Corp., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Kunshan Asia Aroma Corp., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kunshan Asia Aroma Corp., Ltd.

-24.36%

2.50

52.62%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.85%

EBIT Growth (5y)

-16.28%

EBIT to Interest (avg)

18.79

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.40

Tax Ratio

6.41%

Dividend Payout Ratio

20.50%

Pledged Shares

Institutional Holding

ROCE (avg)

9.16%

ROE (avg)

8.23%

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

2.75

EV to EBIT

65.21

EV to EBITDA

35.03

EV to Capital Employed

2.61

EV to Sales

5.28

PEG Ratio

Dividend Yield

ROCE (Latest)

4.00%

ROE (Latest)

7.43%

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

Mildly Bullish

OBV

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

16What is working for the Company

ROCE(HY)

Highest at 7.8%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.52 times

NET PROFIT(9M)

Higher at CNY 120.93 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.95 times

NET SALES(Q)

Highest at CNY 263.16 MM

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 36.12 MM

DEBT-EQUITY RATIO (HY)

Highest at 9.2 %

RAW MATERIAL COST(Y)

Grown by 9.1% (YoY

INTEREST(Q)

Highest at CNY 5.22 MM

Here's what is working for Kunshan Asia Aroma Corp., Ltd.

Net Profit

At CNY 120.93 MM has Grown at 172.1%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.52 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 263.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 263.16 MM has Grown at 22.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at CNY 120.93 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Kunshan Asia Aroma Corp., Ltd.

Interest

At CNY 5.22 MM has Grown at 29.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 9.2 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY 36.12 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 5.22 MM

in the last five periods and Increased by 29.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 9.1% (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