Shenzhen Kaifa Technology Co., Ltd. (000021) 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

Shenzhen Kaifa Technology Co., Ltd.

Why is Shenzhen Kaifa 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 2.15% and Operating profit at 7.05% 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

Poor long term growth as Net Sales has grown by an annual rate of 2.15% and Operating profit at 7.05% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY 925.78 MM has Grown at 44.72%
DEBT-EQUITY RATIO (HY) Lowest at -6.59 %
INVENTORY TURNOVER RATIO(HY) Highest at 4.68 times

With ROE of 11.97%, it has a fair valuation with a 3.11 Price to Book Value

Over the past year, while the stock has generated a return of 45.65%, its profits have risen by 73.2% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.8

Real-Time Research Report

Verdict Report

How 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.

47.08%

1.84

50.82%

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)

2.15%

EBIT Growth (5y)

7.05%

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

Institutional Holding

ROCE (avg)

6.87%

ROE (avg)

8.61%

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

3.11

EV to EBIT

33.08

EV to EBITDA

19.97

EV to Capital Employed

3.25

EV to Sales

2.44

PEG Ratio

0.36

Dividend Yield

0.77%

ROCE (Latest)

9.81%

ROE (Latest)

11.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

NET PROFIT(9M)

At CNY 925.78 MM has Grown at 44.72%

DEBT-EQUITY RATIO (HY)

Lowest at -6.59 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.68 times

RAW MATERIAL COST(Y)

Fallen by -28.77% (YoY

EPS(Q)

Highest at CNY 0.19

-5What is not working for the Company

NET SALES(Q)

At CNY 3,516.26 MM has Fallen at -8.77%

OPERATING PROFIT(Q)

Lowest at CNY 352.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.01 %

Here's what is working for Shenzhen Kaifa Technology Co., Ltd.

Debt-Equity Ratio

Lowest at -6.59 % and Grown

In each half year 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 4.68 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

Net Profit

At CNY 925.78 MM has Grown at 44.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -28.77% (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.

Net Sales

At CNY 3,516.26 MM has Fallen at -8.77%

over average net sales of the previous four periods of CNY 3,854.18 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 352.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales