China Lilang Ltd. (1234) 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

Yue Yuen Industrial (Holdings) Ltd.

Bosideng International Holdings Ltd.

Li Ning Co., Ltd.

JNBY Design Ltd.

Crystal International Group Ltd.

China Lilang Ltd.

361 Degrees International Ltd.

Stella International Holdings Ltd.

DL Holdings Group Ltd.

Golden Solar New Energy Technology Holdings Ltd.

Xtep International Holdings Ltd.

Why is China Lilang Ltd. ?

High Management Efficiency with a high ROE of 12.89%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 43.40

Poor long term growth as Operating profit has grown by an annual rate -10.04% of over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at HKD 1,216.96 MM
ROCE(HY) Lowest at 10.3%
OPERATING PROFIT(Q) Lowest at HKD 367.36 MM

With ROE of 10.05%, it has a Fair valuation with a 1.00 Price to Book Value

Over the past year, while the stock has generated a return of -13.96%, its profits have fallen by -21.8%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 18.06% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.96% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Lilang Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is China Lilang Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Lilang Ltd.

-100.0%

-1.04

24.49%

Hang Seng Hong Kong

18.06%

0.71

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.73%

EBIT Growth (5y)

-10.04%

EBIT to Interest (avg)

43.40

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.71

Tax Ratio

24.30%

Dividend Payout Ratio

71.86%

Pledged Shares

Institutional Holding

ROCE (avg)

17.81%

ROE (avg)

12.89%

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

1.00

EV to EBIT

6.52

EV to EBITDA

4.12

EV to Capital Employed

1.01

EV to Sales

0.77

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

15.44%

ROE (Latest)

10.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

7What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 73.56%

DEBT-EQUITY RATIO (HY)

Lowest at -29.57 %

INTEREST COVERAGE RATIO(Q)

Highest at 3,240.21

CASH AND EQV(HY)

Highest at HKD 2,914.98 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 1,216.96 MM

ROCE(HY)

Lowest at 10.3%

OPERATING PROFIT(Q)

Lowest at HKD 367.36 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.97%

DIVIDEND PER SHARE(HY)

Lowest at HKD 4.94

Here's what is working for China Lilang Ltd.

Interest Coverage Ratio

Highest at 3,240.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -29.57 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 73.56% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Highest at HKD 2,914.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at HKD 141.88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for China Lilang Ltd.

Operating Profit

Lowest at HKD 367.36 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 1,216.96 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Inventory Turnover Ratio

Lowest at 1.97%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at HKD 4.94

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Non Operating Income

Highest at HKD 0.32 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income