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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kunshan Kinglai Hygienic Materials Co., Ltd.

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

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 16.04% and Operating profit at 20.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 3 consecutive quarters

NET PROFIT(HY) At CNY 79.25 MM has Grown at -41.77%
ROCE(HY) Lowest at 10.91%
INTEREST(Q) At CNY 10.26 MM has Grown at 57.42%

With ROE of 9.38%, it has a very expensive valuation with a 5.99 Price to Book Value

Over the past year, while the stock has generated a return of 99.27%, its profits have fallen by -27.1%
At the current price, the company has a high dividend yield of 0.2

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 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.

73.14%

1.82

71.28%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.04%

EBIT Growth (5y)

20.49%

EBIT to Interest (avg)

7.11

Debt to EBITDA (avg)

2.81

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.76

Tax Ratio

13.19%

Dividend Payout Ratio

10.74%

Pledged Shares

Institutional Holding

ROCE (avg)

10.59%

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

Industry P/E

Price to Book Value

5.99

EV to EBIT

56.15

EV to EBITDA

34.44

EV to Capital Employed

3.76

EV to Sales

4.96

PEG Ratio

Dividend Yield

0.20%

ROCE (Latest)

6.70%

ROE (Latest)

9.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 529.52 MM

CASH AND EQV(HY)

Highest at CNY 1,068.04 MM

-16What is not working for the Company

NET PROFIT(HY)

At CNY 79.25 MM has Grown at -41.77%

ROCE(HY)

Lowest at 10.91%

INTEREST(Q)

At CNY 10.26 MM has Grown at 57.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 596.01

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28%

NET SALES(Q)

Lowest at CNY 669.79 MM

OPERATING PROFIT(Q)

Lowest at CNY 61.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.13 %

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

Operating Cash Flow

Highest at CNY 529.52 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)

Cash and Eqv

Highest at CNY 1,068.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Kunshan Kinglai Hygienic Materials Co., Ltd.

Net Profit

At CNY 79.25 MM has Grown at -41.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 10.26 MM has Grown at 57.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 596.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 669.79 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 61.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.28%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio