Zhejiang Kangsheng Co., Ltd. (002418) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Kangsheng Co., Ltd.

Why is Zhejiang Kangsheng Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.81%

The company has been able to generate a Return on Capital Employed (avg) of 1.81% signifying low profitability per unit of total capital (equity and debt)

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 7.97% and Operating profit at 12.60% 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 1.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.97% and Operating profit at 12.60% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY -75.9 MM has Grown at -882.6%
INTEREST(HY) At CNY 16.88 MM has Grown at 60.37%
OPERATING CASH FLOW(Y) Lowest at CNY -66.74 MM

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 Industrial Manufacturing)

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

Is Zhejiang Kangsheng Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Kangsheng Co., Ltd.

58.57%

2.67

66.78%

China Shanghai Composite

14.77%

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)

7.97%

EBIT Growth (5y)

12.60%

EBIT to Interest (avg)

0.32

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.21

Tax Ratio

11.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.81%

ROE (avg)

1.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.19

EV to EBIT

-65.76

EV to EBITDA

-5150.98

EV to Capital Employed

2.57

EV to Sales

1.96

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.91%

ROE (Latest)

-6.24%

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

Mildly Bullish

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

12What is working for the Company

NET SALES(HY)

At CNY 1,596.79 MM has Grown at 32.5%

RAW MATERIAL COST(Y)

Fallen by -2.41% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 13.96 MM

NET PROFIT(Q)

Highest at CNY 12.54 MM

EPS(Q)

Highest at CNY 0.01

-18What is not working for the Company

NET PROFIT(HY)

At CNY -75.9 MM has Grown at -882.6%

INTEREST(HY)

At CNY 16.88 MM has Grown at 60.37%

OPERATING CASH FLOW(Y)

Lowest at CNY -66.74 MM

ROCE(HY)

Lowest at -5.95%

DEBT-EQUITY RATIO (HY)

Highest at 40.64 %

Here's what is working for Zhejiang Kangsheng Co., Ltd.

Pre-Tax Profit

At CNY 13.96 MM has Grown at 164.34%

over average net sales of the previous four periods of CNY -21.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.54 MM has Grown at 151.04%

over average net sales of the previous four periods of CNY -24.58 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,596.79 MM has Grown at 32.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 13.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 12.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -2.41% (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 Kangsheng Co., Ltd.

Interest

At CNY 16.88 MM has Grown at 60.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -66.74 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 40.64 %

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