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

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 65.70% and Operating profit at 26.65% 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 Sep 25

NET PROFIT(9M) At CNY 210.71 MM has Grown at -43.7%
ROCE(HY) Lowest at 5.76%
DEBT-EQUITY RATIO (HY) Highest at 237.85 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 65.01%, its profits have fallen by -52.2%
At the current price, the company has a high dividend yield of 0.4

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.

66.17%

1.38

67.35%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

65.70%

EBIT Growth (5y)

26.65%

EBIT to Interest (avg)

5.68

Debt to EBITDA (avg)

6.73

Net Debt to Equity (avg)

1.86

Sales to Capital Employed (avg)

1.86

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

4.99

EV to EBIT

40.07

EV to EBITDA

36.16

EV to Capital Employed

2.15

EV to Sales

0.84

PEG Ratio

Dividend Yield

0.42%

ROCE (Latest)

5.36%

ROE (Latest)

12.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.39% (YoY

CASH AND EQV(HY)

Highest at CNY 4,562.19 MM

NET SALES(Q)

Highest at CNY 4,381.17 MM

PRE-TAX PROFIT(Q)

Highest at CNY 113.42 MM

NET PROFIT(Q)

Highest at CNY 96.78 MM

-11What is not working for the Company

NET PROFIT(9M)

At CNY 210.71 MM has Grown at -43.7%

ROCE(HY)

Lowest at 5.76%

DEBT-EQUITY RATIO (HY)

Highest at 237.85 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.95 times

EPS(Q)

Lowest at CNY -0.28

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

Net Sales

Highest at CNY 4,381.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 113.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 113.42 MM has Grown at 77.03%

over average net sales of the previous four periods of CNY 64.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 96.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 96.78 MM has Grown at 57.26%

over average net sales of the previous four periods of CNY 61.54 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 4,562.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.39% (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 Wuxi DK Electronic Materials Co., Ltd.

EPS

Lowest at CNY -0.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 237.85 %

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

Debtors Turnover Ratio

Lowest at 2.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio