Chengxin Lithium Group Co., Ltd. (002240) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chengxin Lithium Group Co., Ltd.

Why is Chengxin Lithium Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.53% and Operating profit at -224.06% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(9M) At CNY -575.06 MM has Grown at -876.88%
OPERATING CASH FLOW(Y) Lowest at CNY 1,388.46 MM
INTEREST(HY) At CNY 119.72 MM has Grown at 7.05%

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 78.81%, its profits have fallen by -479.5%
At the current price, the company has a high dividend yield of 0

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 Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chengxin Lithium Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chengxin Lithium Group Co., Ltd.

96.63%

1.84

46.95%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.53%

EBIT Growth (5y)

-224.06%

EBIT to Interest (avg)

18.28

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.38

Tax Ratio

2.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

17.66%

ROE (avg)

15.30%

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

1.38

EV to EBIT

-15.60

EV to EBITDA

-28.97

EV to Capital Employed

1.25

EV to Sales

5.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.02%

ROE (Latest)

-12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

No Trend

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

5What is working for the Company

NET PROFIT(HY)

Higher at CNY -302.13 MM

RAW MATERIAL COST(Y)

Fallen by -75% (YoY

-29What is not working for the Company

NET PROFIT(9M)

At CNY -575.06 MM has Grown at -876.88%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,388.46 MM

INTEREST(HY)

At CNY 119.72 MM has Grown at 7.05%

DEBT-EQUITY RATIO (HY)

Highest at 46.31 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.75%

NET SALES(Q)

Lowest at CNY 682.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -18.71 %

Here's what is working for Chengxin Lithium Group Co., Ltd.

Net Profit

Higher at CNY -302.13 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY -302.13 MM has Grown at 44.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -75% (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 Chengxin Lithium Group Co., Ltd.

Net Sales

At CNY 682.84 MM has Fallen at -39.74%

over average net sales of the previous four periods of CNY 1,133.08 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,388.46 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)

Interest

At CNY 119.72 MM has Grown at 7.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 46.31 % 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

Inventory Turnover Ratio

Lowest at 1.75% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 682.84 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -18.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales