China Leadshine Technology Co., Ltd. (002979) 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

China Leadshine Technology Co., Ltd.

Why is China Leadshine Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.59% and Operating profit at 3.45% over the last 5 years

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 812.95
OPERATING PROFIT(Q) Lowest at CNY 28.07 MM
OPERATING PROFIT MARGIN(Q) Lowest at 6.86 %

With ROE of 13.66%, it has a very expensive valuation with a 9.44 Price to Book Value

Over the past year, while the stock has generated a return of -28.50%, its profits have risen by 19.2% ; the PEG ratio of the company is 4
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.50% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Leadshine Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Leadshine Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Leadshine Technology Co., Ltd.

-27.43%

2.21

39.97%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.59%

EBIT Growth (5y)

3.45%

EBIT to Interest (avg)

52.67

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.75

Tax Ratio

12.03%

Dividend Payout Ratio

48.63%

Pledged Shares

Institutional Holding

ROCE (avg)

13.60%

ROE (avg)

16.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.44

EV to EBIT

77.96

EV to EBITDA

62.70

EV to Capital Employed

9.78

EV to Sales

9.06

PEG Ratio

3.98

Dividend Yield

0.66%

ROCE (Latest)

12.54%

ROE (Latest)

13.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 286.51 MM

RAW MATERIAL COST(Y)

Fallen by -4.48% (YoY

CASH AND EQV(HY)

Highest at CNY 1,506.65 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.65 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.79 times

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 812.95

OPERATING PROFIT(Q)

Lowest at CNY 28.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.86 %

Here's what is working for China Leadshine Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 286.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,506.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.48% (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 China Leadshine Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 812.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 28.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.45 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income