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)

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 8.41% and Operating profit at 13.16% 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 8.41% and Operating profit at 13.16% over the last 5 years

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

INTEREST(HY) At CNY 11.23 MM has Grown at 82.32%
OPERATING CASH FLOW(Y) Lowest at CNY -102.3 MM
DEBT-EQUITY RATIO (HY) Highest at 45.67 %

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.

41.82%

2.56

53.67%

China Shanghai Composite

16.01%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.41%

EBIT Growth (5y)

13.16%

EBIT to Interest (avg)

0.32

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.23

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

3.64

EV to EBIT

-74.00

EV to EBITDA

-5796.00

EV to Capital Employed

2.89

EV to Sales

2.20

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

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

15What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 5.26 MM has Grown at 125.24%

NET PROFIT(Q)

At CNY 4.88 MM has Grown at 121.58%

RAW MATERIAL COST(Y)

Fallen by -58.57% (YoY

-14What is not working for the Company

INTEREST(HY)

At CNY 11.23 MM has Grown at 82.32%

OPERATING CASH FLOW(Y)

Lowest at CNY -102.3 MM

DEBT-EQUITY RATIO (HY)

Highest at 45.67 %

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

Pre-Tax Profit

At CNY 5.26 MM has Grown at 125.24%

over average net sales of the previous four periods of CNY -20.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.88 MM has Grown at 121.58%

over average net sales of the previous four periods of CNY -22.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -58.57% (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 11.23 MM has Grown at 82.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -102.3 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 45.67 %

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