Shenzhen King Brother Electronics Technology Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen King Brother Electronics Technology Co., Ltd.

Why is Shenzhen King Brother Electronics Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.97%

The company has been able to generate a Return on Capital Employed (avg) of 6.97% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at -34.19% over the last 5 years

ROCE(HY) Lowest at 4.59%
RAW MATERIAL COST(Y) Grown by 9.83% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 2.51%

With ROE of 3.58%, it has a very expensive valuation with a 2.19 Price to Book Value

Over the past year, while the stock has generated a return of 6.71%, its profits have fallen by -32.3%

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 Electronics & Appliances)

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

Is Shenzhen King Brother Electronics Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen King Brother Electronics Technology Co., Ltd.

-100.0%

0.13

48.77%

China Shanghai Composite

14.03%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.36%

EBIT Growth (5y)

-34.19%

EBIT to Interest (avg)

23.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.94

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

27.14%

Pledged Shares

Institutional Holding

ROCE (avg)

6.97%

ROE (avg)

6.94%

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

2.19

EV to EBIT

101.74

EV to EBITDA

28.08

EV to Capital Employed

2.86

EV to Sales

1.79

PEG Ratio

Dividend Yield

ROCE (Latest)

2.81%

ROE (Latest)

3.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -37.59 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.01%

-18What is not working for the Company

ROCE(HY)

Lowest at 4.59%

RAW MATERIAL COST(Y)

Grown by 9.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.51%

NET SALES(Q)

Lowest at CNY 151.33 MM

OPERATING PROFIT(Q)

Lowest at CNY -4.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.88 %

PRE-TAX PROFIT(Q)

Lowest at CNY -2.8 MM

NET PROFIT(Q)

Lowest at CNY -2.43 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for Shenzhen King Brother Electronics Technology Co., Ltd.

Debt-Equity Ratio

Lowest at -37.59 %

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 9.01%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shenzhen King Brother Electronics Technology Co., Ltd.

Pre-Tax Profit

At CNY -2.8 MM has Fallen at -147.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.43 MM has Fallen at -141.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 151.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -4.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -2.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -2.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.51%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales