Kunshan Kinglai Hygienic Materials Co., Ltd. (300260) 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 Kinglai Hygienic Materials Co., Ltd.

Why is Kunshan Kinglai Hygienic Materials Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.91% and Operating profit at 10.94% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 13.76% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 83.74 MM
ROCE(HY) Lowest at 8.53%
INTEREST COVERAGE RATIO(Q) Lowest at 395.36

With ROE of 8.16%, it has a very expensive valuation with a 7.99 Price to Book Value

Over the past year, while the stock has generated a return of 177.93%, its profits have fallen by -16%
At the current price, the company has a high dividend yield of 0.1

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 Industrial Manufacturing)

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

Is Kunshan Kinglai Hygienic Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kunshan Kinglai Hygienic Materials Co., Ltd.

47.58%

3.92

73.35%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.91%

EBIT Growth (5y)

10.94%

EBIT to Interest (avg)

7.20

Debt to EBITDA (avg)

3.36

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.71

Tax Ratio

9.27%

Dividend Payout Ratio

11.57%

Pledged Shares

Institutional Holding

ROCE (avg)

10.09%

ROE (avg)

13.76%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

280

Industry P/E

Price to Book Value

22.83

EV to EBIT

227.36

EV to EBITDA

143.41

EV to Capital Employed

12.06

EV to Sales

16.53

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

5.30%

ROE (Latest)

8.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 970.58

RAW MATERIAL COST(Y)

Fallen by -0.09% (YoY

CASH AND EQV(HY)

Highest at CNY 1,027.28 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.45 times

OPERATING PROFIT(Q)

Highest at CNY 126.31 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.24 %

PRE-TAX PROFIT(Q)

Highest at CNY 63.42 MM

-9What is not working for the Company

INTEREST(9M)

At CNY 36.72 MM has Grown at 14.42%

OPERATING CASH FLOW(Y)

Lowest at CNY 172.96 MM

ROCE(HY)

Lowest at 7.86%

DEBT-EQUITY RATIO (HY)

Highest at 96.99 %

Here's what is working for Kunshan Kinglai Hygienic Materials Co., Ltd.

Interest Coverage Ratio

Highest at 970.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at CNY 126.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 16.24 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 63.42 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 1,027.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.09% (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 Kunshan Kinglai Hygienic Materials Co., Ltd.

Interest

At CNY 36.72 MM has Grown at 14.42%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 96.99 % 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 172.96 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)