Why is Kunshan Asia Aroma Corp., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.83% and Operating profit at -18.18% over the last 5 years
2
The company has declared negative results for the last 2 consecutive quarters
- PRE-TAX PROFIT(Q) At CNY 14.7 MM has Fallen at -84.02%
- NET PROFIT(Q) At CNY 14.55 MM has Fallen at -82.28%
- ROCE(HY) Lowest at 2.85%
3
Below par performance in long term as well as near term
- Along with generating -24.67% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Kunshan Asia Aroma Corp., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Kunshan Asia Aroma Corp., Ltd.
-25.85%
2.16
39.46%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
12.83%
EBIT Growth (5y)
-18.18%
EBIT to Interest (avg)
15.95
Debt to EBITDA (avg)
0.39
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
0.42
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
14.59%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.95%
ROE (avg)
8.23%
Valuation Key Factors 
Factor
Value
P/E Ratio
85
Industry P/E
Price to Book Value
1.75
EV to EBIT
53.93
EV to EBITDA
28.40
EV to Capital Employed
1.69
EV to Sales
2.92
PEG Ratio
NA
Dividend Yield
0.32%
ROCE (Latest)
3.13%
ROE (Latest)
2.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 217.56 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
OPERATING PROFIT(Q)
Highest at CNY 53.35 MM
-16What is not working for the Company
NET PROFIT(Q)
At CNY 7.45 MM has Fallen at -73.24%
ROCE(HY)
Lowest at 1.68%
PRE-TAX PROFIT(Q)
At CNY 12.25 MM has Fallen at -51.32%
RAW MATERIAL COST(Y)
Grown by 6.17% (YoY
Here's what is working for Kunshan Asia Aroma Corp., Ltd.
Operating Cash Flow
Highest at CNY 217.56 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Operating Profit
Highest at CNY 53.35 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Here's what is not working for Kunshan Asia Aroma Corp., Ltd.
Net Profit
At CNY 7.45 MM has Fallen at -73.24%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 12.25 MM has Fallen at -51.32%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Raw Material Cost
Grown by 6.17% (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
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