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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.30% and Operating profit at 34.59% over the last 5 years
The company is Net-Debt Free
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 1.30% and Operating profit at 34.59% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At CNY 19.86 MM has Grown at 15.87%
PRE-TAX PROFIT(Q) At CNY 2.11 MM has Fallen at -74.25%
NET SALES(Q) At CNY 622.9 MM has Fallen at -11.95%

With ROE of 1.14%, it has a very expensive valuation with a 2.99 Price to Book Value

Over the past year, while the stock has generated a return of 9.04%, its profits have risen by 119.9% ; the PEG ratio of the company is 2.2

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.

-0.21%

1.50

64.00%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.30%

EBIT Growth (5y)

34.59%

EBIT to Interest (avg)

0.63

Debt to EBITDA (avg)

21.52

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.23

Tax Ratio

31.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.13%

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

270

Industry P/E

Price to Book Value

3.08

EV to EBIT

151.27

EV to EBITDA

65.20

EV to Capital Employed

2.41

EV to Sales

1.89

PEG Ratio

2.25

Dividend Yield

ROCE (Latest)

1.59%

ROE (Latest)

1.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 142.04 MM

NET PROFIT(9M)

Higher at CNY 19.57 MM

-14What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 0.53 MM has Fallen at -89.79%

DEBT-EQUITY RATIO (HY)

Highest at 56.55 %

RAW MATERIAL COST(Y)

Grown by 11.56% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.13 times

INTEREST(Q)

Highest at CNY 8.89 MM

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

Net Profit

At CNY 19.57 MM has Grown at 124.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 142.04 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Higher at CNY 19.57 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Zhejiang Kangsheng Co., Ltd.

Pre-Tax Profit

At CNY 0.53 MM has Fallen at -89.79%

over average net sales of the previous four periods of CNY 5.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 8.89 MM has Grown at 17.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 56.55 % and Grown

In each half year 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

Interest

Highest at CNY 8.89 MM

in the last five periods and Increased by 17.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 10.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.56% (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