Shenzhen Kangtai Biological Products Co., Ltd. (300601) 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 Kangtai Biological Products Co., Ltd.

Why is Shenzhen Kangtai Biological Products Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.42% and Operating profit at -39.23% over the last 5 years

Flat results in Mar 26

NET SALES(9M) At CNY 1,912.13 MM has Grown at -8.72%
INTEREST COVERAGE RATIO(Q) Lowest at 164.32
OPERATING PROFIT(Q) Lowest at CNY 48.47 MM

With ROE of 0.75%, it has a fair valuation with a 1.03 Price to Book Value

Over the past year, while the stock has generated a return of -20.67%, its profits have fallen by -57.3%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.67% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Kangtai Biological Products Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Shenzhen Kangtai Biological Products Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Kangtai Biological Products Co., Ltd.

-22.49%

-0.97

35.63%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.42%

EBIT Growth (5y)

-39.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.24

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

55.56%

Pledged Shares

Institutional Holding

ROCE (avg)

7.16%

ROE (avg)

6.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

137

Industry P/E

Price to Book Value

1.03

EV to EBIT

179.18

EV to EBITDA

26.99

EV to Capital Employed

1.03

EV to Sales

3.77

PEG Ratio

Dividend Yield

ROCE (Latest)

0.57%

ROE (Latest)

0.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

PRE-TAX PROFIT(Q)

At CNY 32.35 MM has Grown at 222.05%

RAW MATERIAL COST(Y)

Fallen by -12.05% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 0.98 %

NET PROFIT(Q)

Highest at CNY 26.95 MM

EPS(Q)

Highest at CNY 0.03

-6What is not working for the Company

NET SALES(9M)

At CNY 1,912.13 MM has Grown at -8.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 164.32

OPERATING PROFIT(Q)

Lowest at CNY 48.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.68 %

Here's what is working for Shenzhen Kangtai Biological Products Co., Ltd.

Pre-Tax Profit

At CNY 32.35 MM has Grown at 222.05%

over average net sales of the previous four periods of CNY 10.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 26.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 26.95 MM has Grown at 59.37%

over average net sales of the previous four periods of CNY 16.91 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 0.98 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -12.05% (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 Kangtai Biological Products Co., Ltd.

Interest Coverage Ratio

Lowest at 164.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 1,912.13 MM has Grown at -8.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 48.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales