Zhejiang Kan Specialities Material Co., Ltd. (002012) 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

Zhejiang Kan Specialities Material Co., Ltd.

Why is Zhejiang Kan Specialities Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -18.69% and Operating profit at -44.71% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 0.71 MM has Grown at 292.68%
INTEREST COVERAGE RATIO(Q) Lowest at 453.01
DEBT-EQUITY RATIO (HY) Highest at -41.74 %

With ROE of 3.42%, it has a fair valuation with a 2.16 Price to Book Value

Over the past year, while the stock has generated a return of 28.21%, its profits have risen by 180.2% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Kan Specialities Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang Kan Specialities Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Kan Specialities Material Co., Ltd.

24.73%

2.26

45.39%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-18.69%

EBIT Growth (5y)

-44.71%

EBIT to Interest (avg)

7.11

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

0.39

Tax Ratio

37.71%

Dividend Payout Ratio

30.97%

Pledged Shares

Institutional Holding

ROCE (avg)

6.56%

ROE (avg)

6.39%

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

2.16

EV to EBIT

217.40

EV to EBITDA

92.78

EV to Capital Employed

2.99

EV to Sales

4.25

PEG Ratio

0.35

Dividend Yield

0.29%

ROCE (Latest)

1.37%

ROE (Latest)

3.42%

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

No Trend

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

16What is working for the Company

NET PROFIT(HY)

Higher at CNY 17.88 MM

ROCE(HY)

Highest at 1.99%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.36 times

RAW MATERIAL COST(Y)

Fallen by -9.97% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 0.71 MM has Grown at 292.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 453.01

DEBT-EQUITY RATIO (HY)

Highest at -41.74 %

OPERATING PROFIT(Q)

Lowest at CNY 3.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.09 %

NET PROFIT(Q)

Lowest at CNY 4.11 MM

EPS(Q)

Lowest at CNY 0.01

Here's what is working for Zhejiang Kan Specialities Material Co., Ltd.

Debtors Turnover Ratio

Highest at 4.36 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.97% (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 Zhejiang Kan Specialities Material Co., Ltd.

Interest

At CNY 0.71 MM has Grown at 292.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 453.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 4.11 MM has Fallen at -47.2%

over average net sales of the previous four periods of CNY 7.79 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 3.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 4.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -41.74 %

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