Shanghai Kinlita Chemical Co., Ltd. (300225) 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

Shanghai Kinlita Chemical Co., Ltd.

Why is Shanghai Kinlita Chemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.64%

The company has been able to generate a Return on Capital Employed (avg) of 2.64% signifying low profitability per unit of total capital (equity and debt)

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 -1.78% and Operating profit at -13.48% 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 2.87% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.78% and Operating profit at -13.48% over the last 5 years

With ROE of 3.61%, it has a very expensive valuation with a 2.35 Price to Book Value

Over the past year, while the stock has generated a return of -29.26%, its profits have risen by 109% ; the PEG ratio of the company is 0.6

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 Other Industrial Products)

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

Is Shanghai Kinlita Chemical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Kinlita Chemical Co., Ltd.

-25.94%

-0.14

92.40%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.78%

EBIT Growth (5y)

-13.48%

EBIT to Interest (avg)

-35.58

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.66

Tax Ratio

10.65%

Dividend Payout Ratio

30.77%

Pledged Shares

Institutional Holding

ROCE (avg)

2.64%

ROE (avg)

2.87%

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

2.35

EV to EBIT

56.02

EV to EBITDA

36.81

EV to Capital Employed

2.35

EV to Sales

2.76

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

4.19%

ROE (Latest)

3.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6 times

INTEREST COVERAGE RATIO(Q)

Highest at 1,027.8

RAW MATERIAL COST(Y)

Fallen by -1.93% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 10.32 MM

-5What is not working for the Company

NET PROFIT(HY)

At CNY 11.97 MM has Grown at -33.86%

Here's what is working for Shanghai Kinlita Chemical Co., Ltd.

Interest Coverage Ratio

Highest at 1,027.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 6 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

Highest at CNY 10.32 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 10.32 MM has Grown at 70.97%

over average net sales of the previous four periods of CNY 6.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -1.93% (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 Shanghai Kinlita Chemical Co., Ltd.

Net Profit

At CNY 11.97 MM has Grown at -33.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)