Why is Chengdu Lihang Technology Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.53%
- The company has been able to generate a Return on Capital Employed (avg) of 1.53% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -20.11% and Operating profit at -307.85% over the last 5 years
3
Flat results in Mar 25
- DEBT-EQUITY RATIO (HY) Highest at 14 %
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -25.57%, its profits have fallen by -24%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -25.57% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Aerospace & Defense)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Chengdu Lihang Technology Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Chengdu Lihang Technology Co., Ltd.
-25.57%
-0.25
51.73%
China Shanghai Composite
15.85%
1.09
14.56%
Quality key factors
Factor
Value
Sales Growth (5y)
-20.11%
EBIT Growth (5y)
-307.85%
EBIT to Interest (avg)
-17.36
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
0.32
Tax Ratio
12.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.53%
ROE (avg)
1.04%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.39
EV to EBIT
-12.02
EV to EBITDA
-16.10
EV to Capital Employed
2.27
EV to Sales
7.13
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-18.91%
ROE (Latest)
-17.17%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
No Trend
Technical Movement
18What is working for the Company
NET SALES(9M)
At CNY 224.21 MM has Grown at 50.6%
RAW MATERIAL COST(Y)
Fallen by -164% (YoY
NET PROFIT(9M)
Higher at CNY -74.61 MM
PRE-TAX PROFIT(Q)
At CNY -5.18 MM has Grown at 56.47%
EPS(Q)
Highest at CNY -0.06
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 14 %
Here's what is working for Chengdu Lihang Technology Co., Ltd.
Net Sales
At CNY 43.38 MM has Grown at 255.14%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY -5.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY -5.18 MM has Grown at 56.47%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY -4.93 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY -4.93 MM has Grown at 52.02%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY -0.06
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -164% (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 Chengdu Lihang Technology Co., Ltd.
Debt-Equity Ratio
Highest at 14 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






