Ocean's King Lighting Science & Technology Co., Ltd. (002724) 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

Ocean's King Lighting Science & Technology Co., Ltd.

Why is Ocean's King Lighting Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.34%

The company has been able to generate a Return on Capital Employed (avg) of 7.34% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.46% and Operating profit at -156.29% over the last 5 years

Positive results in Mar 26

NET PROFIT(HY) Higher at CNY 11.43 MM
ROCE(HY) Highest at 2.77%
DEBTORS TURNOVER RATIO(HY) Highest at 2.15 times

With ROE of 0.53%, it has a fair valuation with a 1.46 Price to Book Value

Over the past year, while the stock has generated a return of -21.37%, its profits have risen by 104.1% ; the PEG ratio of the company is 2.7
At the current price, the company has a high dividend yield of 1.9

Below par performance in long term as well as near term

Along with generating -21.37% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ocean's King Lighting Science & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ocean's King Lighting Science & Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ocean's King Lighting Science & Technology Co., Ltd.

-25.34%

0.18

40.01%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.46%

EBIT Growth (5y)

-156.29%

EBIT to Interest (avg)

86.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.60

Tax Ratio

1.27%

Dividend Payout Ratio

70.08%

Pledged Shares

Institutional Holding

ROCE (avg)

7.34%

ROE (avg)

5.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

277

Industry P/E

Price to Book Value

1.46

EV to EBIT

-158.29

EV to EBITDA

136.30

EV to Capital Employed

1.74

EV to Sales

1.78

PEG Ratio

2.66

Dividend Yield

1.92%

ROCE (Latest)

-1.10%

ROE (Latest)

0.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

17What is working for the Company

NET PROFIT(HY)

Higher at CNY 11.43 MM

ROCE(HY)

Highest at 2.77%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.15 times

RAW MATERIAL COST(Y)

Fallen by 1.12% (YoY

CASH AND EQV(HY)

Highest at CNY 2,262.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at -37.41 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.9 times

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -20.97 MM has Fallen at -281.37%

NET PROFIT(Q)

At CNY -34.08 MM has Fallen at -918.63%

OPERATING CASH FLOW(Y)

Lowest at CNY 160.46 MM

NET SALES(Q)

Lowest at CNY 296.62 MM

Here's what is working for Ocean's King Lighting Science & Technology Co., Ltd.

Debtors Turnover Ratio

Highest at 2.15 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at CNY 2,262.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -37.41 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.9 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 1.12% (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 Ocean's King Lighting Science & Technology Co., Ltd.

Pre-Tax Profit

At CNY -20.97 MM has Fallen at -281.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -34.08 MM has Fallen at -918.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 160.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 296.62 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -10.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)