Shenzhen Kedali Industry Co., Ltd. (002850) 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 Kedali Industry Co., Ltd.

Why is Shenzhen Kedali Industry Co., Ltd. ?

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 21 %
DEBTORS TURNOVER RATIO(HY) Lowest at 1.82 times
OPERATING PROFIT(Q) Lowest at CNY 506.66 MM

With ROE of 13.12%, it has a attractive valuation with a 2.53 Price to Book Value

Over the past year, while the stock has generated a return of 74.21%, its profits have risen by 17.8% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 1.4

Market Beating performance in long term as well as near term

Along with generating 74.21% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Kedali Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Shenzhen Kedali Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Kedali Industry Co., Ltd.

74.21%

2.12

50.44%

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)

45.69%

EBIT Growth (5y)

50.80%

EBIT to Interest (avg)

16.36

Debt to EBITDA (avg)

1.01

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.75

Tax Ratio

12.81%

Dividend Payout Ratio

38.76%

Pledged Shares

Institutional Holding

ROCE (avg)

11.08%

ROE (avg)

12.08%

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

2.53

EV to EBIT

17.19

EV to EBITDA

13.03

EV to Capital Employed

2.27

EV to Sales

2.33

PEG Ratio

1.08

Dividend Yield

1.36%

ROCE (Latest)

13.20%

ROE (Latest)

13.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.2% (YoY

CASH AND EQV(HY)

Highest at CNY 8,008.72 MM

NET SALES(Q)

At CNY 4,142.36 MM has Grown at 37.09%

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 21 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.82 times

OPERATING PROFIT(Q)

Lowest at CNY 506.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.23 %

Here's what is working for Shenzhen Kedali Industry Co., Ltd.

Net Sales

At CNY 4,142.36 MM has Grown at 37.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 8,008.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.2% (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 Kedali Industry Co., Ltd.

Operating Profit

Lowest at CNY 506.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 21 %

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

Debtors Turnover Ratio

Lowest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio