Shenzhen KTC 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 KTC Technology Co., Ltd.

Why is Shenzhen KTC Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.60% and Operating profit at -32.70% over the last 5 years

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

NET PROFIT(HY) At CNY 167.45 MM has Grown at -65.85%
NET SALES(9M) At CNY 11,029.94 MM has Grown at -9.05%
ROCE(HY) Lowest at 5.57%

With ROE of 5.95%, it has a fair valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of -7.75%, its profits have fallen by -43%
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.75% 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 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 KTC Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen KTC Technology Co., Ltd.

-28.69%

-0.31

26.12%

China Shanghai Composite

1.14%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.60%

EBIT Growth (5y)

-32.70%

EBIT to Interest (avg)

53.63

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.15

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

133.33%

Pledged Shares

Institutional Holding

ROCE (avg)

17.38%

ROE (avg)

18.21%

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

1.76

EV to EBIT

80.07

EV to EBITDA

58.16

EV to Capital Employed

1.62

EV to Sales

1.08

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

2.03%

ROE (Latest)

5.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 159.01%

RAW MATERIAL COST(Y)

Fallen by -15.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.23 times

-17What is not working for the Company

NET PROFIT(9M)

At CNY 314.22 MM has Grown at -53.14%

OPERATING CASH FLOW(Y)

Lowest at CNY -1,387.56 MM

ROCE(HY)

Lowest at 5.52%

INTEREST(Q)

At CNY 1.71 MM has Grown at 25.34%

DEBT-EQUITY RATIO (HY)

Highest at 31.33 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.63 times

PRE-TAX PROFIT(Q)

Fallen at -34.42%

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

Debtors Turnover Ratio

Highest at 5.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 159.01%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -15.83% (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 KTC Technology Co., Ltd.

Net Profit

At CNY 314.22 MM has Grown at -53.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.71 MM has Grown at 25.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -1,387.56 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Fallen at -34.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 31.33 %

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

Inventory Turnover Ratio

Lowest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio