China Lesso Group Holdings Ltd. (2128) 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

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China Lesso Group Holdings Ltd.

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Why is China Lesso Group Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -8.08% of over the last 5 years
The company is Net-Debt Free

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 7,233.44 MM
ROCE(HY) Lowest at 5.15%
NET SALES(Q) Lowest at HKD 12,961.92 MM

With ROE of 5.77%, it has a Very Expensive valuation with a 0.72 Price to Book Value

Over the past year, while the stock has generated a return of 17.66%, its profits have fallen by -24.8%

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 Miscellaneous)

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

Is China Lesso Group Holdings Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

China Lesso Group Holdings Ltd.

17.66%

0.53

39.61%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.11%

EBIT Growth (5y)

-8.08%

EBIT to Interest (avg)

7.04

Debt to EBITDA (avg)

2.75

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.63

Tax Ratio

24.07%

Dividend Payout Ratio

45.01%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

11.80%

ROE (avg)

11.07%

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

0.72

EV to EBIT

10.72

EV to EBITDA

7.37

EV to Capital Employed

0.84

EV to Sales

1.42

PEG Ratio

Dividend Yield

0.81%

ROCE (Latest)

7.84%

ROE (Latest)

5.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 261.1%

RAW MATERIAL COST(Y)

Fallen by -8.24% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 66.36 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.51 times

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 7,233.44 MM

ROCE(HY)

Lowest at 5.15%

NET SALES(Q)

Lowest at HKD 12,961.92 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3 times

OPERATING PROFIT(Q)

Lowest at HKD 2,306.41 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 232.47 MM

NET PROFIT(Q)

Lowest at HKD 161.68 MM

EPS(Q)

Lowest at HKD 0.08

Here's what is working for China Lesso Group Holdings Ltd.

Debt-Equity Ratio

Lowest at 66.36 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 261.1%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -8.24% (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 Lesso Group Holdings Ltd.

Net Sales

Lowest at HKD 12,961.92 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Operating Cash Flow

Lowest at HKD 7,233.44 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD 2,306.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Pre-Tax Profit

Lowest at HKD 232.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -67.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 161.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -74.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Lowest at 3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio