Ningbo KBE Electrical Technology Co., Ltd. (300863) 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

Ningbo KBE Electrical Technology Co., Ltd.

Why is Ningbo KBE Electrical Technology Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 21.81% and Operating profit at 25.47% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.17% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 30.58 MM has Grown at 21.79%
OPERATING CASH FLOW(Y) Lowest at CNY -321.04 MM
ROCE(HY) Lowest at 10.9%

With ROE of 6.97%, it has a very expensive valuation with a 11.53 Price to Book Value

Over the past year, while the stock has generated a return of 165.57%, its profits have fallen by -38.9%
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 Electronics & Appliances)

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

Is Ningbo KBE Electrical Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo KBE Electrical Technology Co., Ltd.

171.67%

3.04

58.01%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.81%

EBIT Growth (5y)

25.47%

EBIT to Interest (avg)

4.01

Debt to EBITDA (avg)

4.61

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

1.10

Tax Ratio

8.73%

Dividend Payout Ratio

22.14%

Pledged Shares

Institutional Holding

ROCE (avg)

8.63%

ROE (avg)

12.17%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

165

Industry P/E

Price to Book Value

11.53

EV to EBIT

106.75

EV to EBITDA

77.26

EV to Capital Employed

4.81

EV to Sales

4.75

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

4.51%

ROE (Latest)

6.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

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

1What is working for the Company

EPS(Q)

Highest at CNY 0.39

-23What is not working for the Company

INTEREST(HY)

At CNY 30.58 MM has Grown at 21.79%

OPERATING CASH FLOW(Y)

Lowest at CNY -321.04 MM

ROCE(HY)

Lowest at 10.9%

RAW MATERIAL COST(Y)

Grown by 11.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 176.95 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.19 times

PRE-TAX PROFIT(Q)

Fallen at -31.08%

NET PROFIT(Q)

Fallen at -29.35%

Here's what is working for Ningbo KBE Electrical Technology Co., Ltd.

EPS

Highest at CNY 0.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Ningbo KBE Electrical Technology Co., Ltd.

Interest

At CNY 30.58 MM has Grown at 21.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -321.04 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Fallen at -31.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -29.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 176.95 %

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

Inventory Turnover Ratio

Lowest at 6.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.38% (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