Wuxi DK Electronic Materials Co., Ltd. (300842) 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

Wuxi DK Electronic Materials Co., Ltd.

Why is Wuxi DK Electronic Materials Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 67.45% and Operating profit at 22.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 14.03% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

INTEREST(HY) At CNY 93.61 MM has Grown at 8.61%
RAW MATERIAL COST(Y) Grown by 38.59% (YoY)
OPERATING PROFIT(Q) Lowest at CNY 55.64 MM

With ROE of 12.75%, it has a expensive valuation with a 4.14 Price to Book Value

Over the past year, while the stock has generated a return of 36.65%, its profits have fallen by -52.2%
At the current price, the company has a high dividend yield of 0.5

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 Other Electrical Equipment)

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

Is Wuxi DK Electronic Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi DK Electronic Materials Co., Ltd.

14.93%

0.94

50.04%

China Shanghai Composite

15.19%

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)

67.45%

EBIT Growth (5y)

22.60%

EBIT to Interest (avg)

5.68

Debt to EBITDA (avg)

6.73

Net Debt to Equity (avg)

1.86

Sales to Capital Employed (avg)

1.78

Tax Ratio

1.18%

Dividend Payout Ratio

11.72%

Pledged Shares

Institutional Holding

ROCE (avg)

8.78%

ROE (avg)

14.03%

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

4.14

EV to EBIT

35.54

EV to EBITDA

32.07

EV to Capital Employed

1.91

EV to Sales

0.75

PEG Ratio

Dividend Yield

0.50%

ROCE (Latest)

5.36%

ROE (Latest)

12.75%

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

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 861.04 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 33.88%

CASH AND EQV(HY)

Highest at CNY 4,630.41 MM

NET SALES(Q)

Highest at CNY 4,048.13 MM

-18What is not working for the Company

INTEREST(HY)

At CNY 93.61 MM has Grown at 8.61%

RAW MATERIAL COST(Y)

Grown by 38.59% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 55.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.37 %

PRE-TAX PROFIT(Q)

At CNY 68.59 MM has Fallen at -35.08%

NET PROFIT(Q)

At CNY 74.58 MM has Fallen at -28.97%

EPS(Q)

Lowest at CNY 0.24

Here's what is working for Wuxi DK Electronic Materials Co., Ltd.

Operating Cash Flow

Highest at CNY 861.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 33.88% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 4,048.13 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 4,630.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Wuxi DK Electronic Materials Co., Ltd.

Interest

At CNY 93.61 MM has Grown at 8.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 55.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 68.59 MM has Fallen at -35.08%

over average net sales of the previous four periods of CNY 105.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 74.58 MM has Fallen at -28.97%

over average net sales of the previous four periods of CNY 105.01 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 38.59% (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