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

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 5.21% and Operating profit at -33.79% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 0.23 MM has Grown at 302.57%
NET PROFIT(HY) At CNY 8.73 MM has Grown at -41.31%
ROCE(HY) Lowest at 3.32%

With ROE of 2.09%, it has a very expensive valuation with a 2.43 Price to Book Value

Over the past year, while the stock has generated a return of 37.69%, its profits have fallen by -54.2%

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, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen King Brother Electronics Technology Co., Ltd.

37.69%

0.58

49.30%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.21%

EBIT Growth (5y)

-33.79%

EBIT to Interest (avg)

23.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.96

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

25.09%

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

116

Industry P/E

Price to Book Value

2.43

EV to EBIT

239.69

EV to EBITDA

42.15

EV to Capital Employed

3.25

EV to Sales

1.94

PEG Ratio

Dividend Yield

ROCE (Latest)

1.36%

ROE (Latest)

2.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.61% (YoY

PRE-TAX PROFIT(Q)

At CNY -0.95 MM has Grown at 66.26%

NET PROFIT(Q)

At CNY -0.62 MM has Grown at 74.66%

-15What is not working for the Company

INTEREST(HY)

At CNY 0.23 MM has Grown at 302.57%

NET PROFIT(HY)

At CNY 8.73 MM has Grown at -41.31%

ROCE(HY)

Lowest at 3.32%

OPERATING PROFIT(Q)

Lowest at CNY -0.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.36 %

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

Pre-Tax Profit

At CNY -0.95 MM has Grown at 66.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.62 MM has Grown at 74.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -1.61% (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 King Brother Electronics Technology Co., Ltd.

Interest

At CNY 0.23 MM has Grown at 302.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -0.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales