Chengdu Lihang Technology Co., Ltd. () 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

Chengdu Lihang Technology Co., Ltd.

Why is Chengdu Lihang Technology Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 24.74% and Operating profit at -351.61% over the last 5 years

Flat results in Sep 25

NET SALES(HY) At CNY 100.05 MM has Grown at -26.59%
NET PROFIT(HY) At CNY -39.47 MM has Grown at -66.65%
OPERATING CASH FLOW(Y) Lowest at CNY -34.01 MM

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 25.30%, its profits have fallen by -24%

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 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.

194.69%

0.06

47.17%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.27%

EBIT Growth (5y)

-286.18%

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)

0.36

Tax Ratio

12.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.53%

ROE (avg)

1.04%

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

5.12

EV to EBIT

-12.45

EV to EBITDA

-14.49

EV to Capital Employed

4.49

EV to Sales

7.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-36.09%

ROE (Latest)

-43.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

10What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.23 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.02 times

NET SALES(Q)

At CNY 56.64 MM has Grown at 29.4%

-26What is not working for the Company

INTEREST(HY)

At CNY 2.36 MM has Grown at 75.1%

PRE-TAX PROFIT(Q)

At CNY -12.53 MM has Fallen at -142.05%

NET PROFIT(Q)

At CNY -12.14 MM has Fallen at -146.22%

ROCE(HY)

Lowest at -35.44%

RAW MATERIAL COST(Y)

Grown by 39.39% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 22.25 %

Here's what is working for Chengdu Lihang Technology Co., Ltd.

Net Sales

At CNY 56.64 MM has Grown at 29.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Chengdu Lihang Technology Co., Ltd.

Interest

At CNY 2.36 MM has Grown at 75.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -12.53 MM has Fallen at -142.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.14 MM has Fallen at -146.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 22.25 %

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

Raw Material Cost

Grown by 39.39% (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