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

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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 3.57% and Operating profit at -209.43% over the last 5 years

The company has declared Negative results for the last 13 consecutive quarters

INTEREST(HY) At CNY 1.98 MM has Grown at 27.22%
ROCE(HY) Lowest at -4.98%
RAW MATERIAL COST(Y) Grown by 6.53% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 25.88%, its profits have fallen by -656.8%
At the current price, the company has a high dividend yield of 0.7

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

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

20.03%

0.92

52.92%

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)

3.57%

EBIT Growth (5y)

-209.43%

EBIT to Interest (avg)

86.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.59

Tax Ratio

1.27%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

2.09

EV to EBIT

-13.57

EV to EBITDA

-16.00

EV to Capital Employed

2.42

EV to Sales

2.84

PEG Ratio

Dividend Yield

0.68%

ROCE (Latest)

-17.80%

ROE (Latest)

-11.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 340.83 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.71%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.67%

NET SALES(Q)

At CNY 328.3 MM has Grown at 26.77%

PRE-TAX PROFIT(Q)

Highest at CNY 11.56 MM

-22What is not working for the Company

INTEREST(HY)

At CNY 1.98 MM has Grown at 27.22%

ROCE(HY)

Lowest at -4.98%

RAW MATERIAL COST(Y)

Grown by 6.53% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,340.58 MM

DEBT-EQUITY RATIO (HY)

Highest at -16.91 %

NET PROFIT(Q)

Fallen at -37.83%

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

Pre-Tax Profit

At CNY 11.56 MM has Grown at 294.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 340.83 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)

Net Sales

At CNY 328.3 MM has Grown at 26.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 11.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.71%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.67%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Ocean's King Lighting Science & Technology Co., Ltd.

Interest

At CNY 1.98 MM has Grown at 27.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Fallen at -37.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,340.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -16.91 %

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

Raw Material Cost

Grown by 6.53% (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