$KRO.US$Revenue grew amid fluctuations over the past 5 years...
$KRO.US$Revenue grew amid fluctuations over the past 5 years, and operating profit shrank sharply for 3 years starting in 2018. In 2021, it rebounded 54% to reach 185 million yuan. Net profit was similar to operating profit, and 77% rebounded in 2021 to reach 110 million yuan.
In the first three quarters of 2022, revenue increased 10%, operating profit increased 21% to $162 million, and net profit increased 53% to $124 million.
Interest expenses for the first three quarters of 2022 accounted for 6.7% of operating profit and 10.3% in 2021, showing an improvement trend.
After rising from 58.6% to 60.9% over the past 5 years, the balance ratio declined again to 56.8% in 2021 and 54.8% in Q3 2022.
The ratio and increase and decrease of accounts receivable and inventory are relatively normal. Long-term loans of 390 million yuan account for 44% of net assets of 889 million, and the leverage ratio is not high.
Over the past five years, a large percentage of net operating cash flow has exceeded net investment, and shareholders' surpluses are high.
The sharp drop in gross margin from 33.8% to 22.3% in 2019 was the main reason for the decline in profit, then continued to decline to 21.4%, then rebounded to 23% in 2021, but fell to 18.3% in Q3 2022.
Currently, the price-earnings ratio is 11.4, and the price-earnings ratio has dropped to 8.2. If the annual net profit reaches 170 million, the price-earnings ratio will drop further to 7.6.
Overall, profit is greatly affected by gross margin. Currently, there is no trend of continuous improvement in gross margin. The current valuation is quite reasonable and not attractive for the time being.
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