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 6.09% and Operating profit at -35.55% over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at 10.13%
NET SALES(Q) At CNY 3,845.45 MM has Fallen at -19.52%
INTEREST(Q) At CNY 3.58 MM has Grown at 258.58%

With ROE of 10.11%, it has a very attractive valuation with a 2.07 Price to Book Value

Over the past year, while the stock has generated a return of -15.60%, its profits have fallen by -27.5%
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.60% 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 KTC Technology 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 KTC Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen KTC Technology Co., Ltd.

-15.6%

-0.53

26.44%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.09%

EBIT Growth (5y)

-35.55%

EBIT to Interest (avg)

62.61

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.16

Tax Ratio

2.93%

Dividend Payout Ratio

15.09%

Pledged Shares

Institutional Holding

ROCE (avg)

21.22%

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

2.07

EV to EBIT

32.38

EV to EBITDA

26.72

EV to Capital Employed

2.29

EV to Sales

0.96

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

7.08%

ROE (Latest)

10.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,487.35 MM

-18What is not working for the Company

ROCE(HY)

Lowest at 10.13%

NET SALES(Q)

At CNY 3,845.45 MM has Fallen at -19.52%

INTEREST(Q)

At CNY 3.58 MM has Grown at 258.58%

DEBT-EQUITY RATIO (HY)

Highest at 31.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.24 times

OPERATING PROFIT(Q)

Lowest at CNY -25.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.65 %

PRE-TAX PROFIT(Q)

Lowest at CNY 43.06 MM

NET PROFIT(Q)

Lowest at CNY 129.5 MM

EPS(Q)

Lowest at CNY 0.17

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

Operating Cash Flow

Highest at CNY 1,487.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Shenzhen KTC Technology Co., Ltd.

Pre-Tax Profit

At CNY 43.06 MM has Fallen at -65.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 3,845.45 MM has Fallen at -19.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.58 MM has Grown at 258.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -25.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 43.06 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 129.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 31.75 %

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 3.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio