Ningbo Kangqiang Electronics Co., Ltd. (002119) 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

Ningbo Kangqiang Electronics Co., Ltd.

Why is Ningbo Kangqiang Electronics 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 6.70% and Operating profit at -21.48% 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 9.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.70% and Operating profit at -21.48% over the last 5 years

Flat results in Jun 25

With ROE of 6.80%, it has a fair valuation with a 4.40 Price to Book Value

Over the past year, while the stock has generated a return of 38.66%, its profits have risen by 15.7% ; the PEG ratio of the company is 4.1
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 Ningbo Kangqiang Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Kangqiang Electronics Co., Ltd.

4.7%

2.01

46.52%

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)

6.70%

EBIT Growth (5y)

-21.48%

EBIT to Interest (avg)

4.14

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.86

Tax Ratio

5.98%

Dividend Payout Ratio

13.53%

Pledged Shares

Institutional Holding

ROCE (avg)

6.17%

ROE (avg)

9.12%

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

4.40

EV to EBIT

182.60

EV to EBITDA

51.99

EV to Capital Employed

3.88

EV to Sales

3.33

PEG Ratio

4.12

Dividend Yield

0.18%

ROCE (Latest)

2.12%

ROE (Latest)

6.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 6.96%

INTEREST COVERAGE RATIO(Q)

Highest at 1,370.71

RAW MATERIAL COST(Y)

Fallen by -14.51% (YoY

CASH AND EQV(HY)

Highest at CNY 841.9 MM

DEBT-EQUITY RATIO (HY)

Lowest at 18.3 %

PRE-TAX PROFIT(Q)

Highest at CNY 39.72 MM

NET PROFIT(Q)

Highest at CNY 39.06 MM

EPS(Q)

Highest at CNY 0.09

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Ningbo Kangqiang Electronics Co., Ltd.

Interest Coverage Ratio

Highest at 1,370.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at CNY 39.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 39.72 MM has Grown at 70.02%

over average net sales of the previous four periods of CNY 23.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 39.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 39.06 MM has Grown at 76.67%

over average net sales of the previous four periods of CNY 22.11 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 841.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 18.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -14.51% (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