Shandong Kuntai New Material Technology Co., Ltd. () 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

Shandong Kuntai New Material Technology Co., Ltd.

Why is Shandong Kuntai New Material Technology 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 12.35% and Operating profit at -23.47% 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 6.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.35% and Operating profit at -23.47% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 0.85 MM has Grown at 36.88%
INTEREST COVERAGE RATIO(Q) Lowest at 2,061.14
DEBT-EQUITY RATIO (HY) Highest at -4.84 %

With ROE of 5.78%, it has a attractive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of 31.64%, its profits have fallen by -5.1% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 31.64% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Kuntai New Material Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Shandong Kuntai New Material Technology Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Kuntai New Material Technology Co., Ltd.

-100.0%

1.68

30.25%

China Shanghai Composite

15.19%

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)

12.35%

EBIT Growth (5y)

-23.47%

EBIT to Interest (avg)

45.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.62

Tax Ratio

14.73%

Dividend Payout Ratio

30.01%

Pledged Shares

Institutional Holding

ROCE (avg)

11.04%

ROE (avg)

6.32%

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

0.75

EV to EBIT

11.29

EV to EBITDA

5.81

EV to Capital Employed

0.73

EV to Sales

0.94

PEG Ratio

0.18

Dividend Yield

0.65%

ROCE (Latest)

6.49%

ROE (Latest)

5.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

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

RAW MATERIAL COST(Y)

Fallen by -11.5% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 0.85 MM has Grown at 36.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,061.14

DEBT-EQUITY RATIO (HY)

Highest at -4.84 %

NET SALES(Q)

Lowest at CNY 128.03 MM

OPERATING PROFIT(Q)

Lowest at CNY 8.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.61 %

NET PROFIT(Q)

Lowest at CNY 6.5 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Shandong Kuntai New Material Technology Co., Ltd.

Raw Material Cost

Fallen by -11.5% (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 Shandong Kuntai New Material Technology Co., Ltd.

Interest

At CNY 0.85 MM has Grown at 36.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,061.14

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 128.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 8.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 6.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -4.84 %

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