ScoreWhy is Shenzhen Kaifa Technology Co., Ltd. ?
1
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 2.49% and Operating profit at 9.22% 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 8.61% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 2.49% and Operating profit at 9.22% over the last 5 years
3
The company has declared Positive results for the last 3 consecutive quarters
- NET PROFIT(HY) At CNY 573.72 MM has Grown at 92.57%
- OPERATING CASH FLOW(Y) Highest at CNY 2,682.32 MM
- ROCE(HY) Highest at 8.53%
4
With ROE of 11.97%, it has a attractive valuation with a 2.88 Price to Book Value
- Over the past year, while the stock has generated a return of 33.53%, its profits have risen by 73.2% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 0.8
5
Consistent Returns over the last 3 years
- Along with generating 33.53% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Shenzhen Kaifa Technology Co., Ltd. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shenzhen Kaifa Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Kaifa Technology Co., Ltd.
18.24%
1.96
45.46%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.49%
EBIT Growth (5y)
9.22%
EBIT to Interest (avg)
3.92
Debt to EBITDA (avg)
1.68
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.69
Tax Ratio
15.83%
Dividend Payout Ratio
31.87%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.87%
ROE (avg)
8.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
2.88
EV to EBIT
30.54
EV to EBITDA
18.44
EV to Capital Employed
3.00
EV to Sales
2.25
PEG Ratio
0.33
Dividend Yield
0.84%
ROCE (Latest)
9.81%
ROE (Latest)
11.97%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET PROFIT(HY)
At CNY 573.72 MM has Grown at 92.57%
OPERATING CASH FLOW(Y)
Highest at CNY 2,682.32 MM
ROCE(HY)
Highest at 8.53%
DEBT-EQUITY RATIO
(HY)
Lowest at -2.25 %
RAW MATERIAL COST(Y)
Fallen by -4.28% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.53%
-5What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 471.91
NET SALES(Q)
At CNY 3,339.59 MM has Fallen at -9.34%
OPERATING PROFIT(Q)
Lowest at CNY 224.26 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.72 %
Here's what is working for Shenzhen Kaifa Technology Co., Ltd.
Net Profit
At CNY 573.72 MM has Grown at 92.57%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -2.25 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at CNY 2,682.32 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Inventory Turnover Ratio
Highest at 4.53%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -4.28% (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 Shenzhen Kaifa Technology Co., Ltd.
Interest Coverage Ratio
Lowest at 471.91
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
At CNY 3,339.59 MM has Fallen at -9.34%
over average net sales of the previous four periods of CNY 3,683.55 MMMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 224.26 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 6.72 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Non Operating Income
Highest at CNY 0.64 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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