Why is DLG Exhibitions & Events Corp. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.40%
- The company has been able to generate a Return on Capital Employed (avg) of 6.40% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -4.99% and Operating profit at 74.87% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.06% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -4.99% and Operating profit at 74.87% over the last 5 years
4
Negative results in Jun 26
- NET SALES(Q) At CNY 291.88 MM has Fallen at -28.75%
- NET PROFIT(Q) At CNY 37.75 MM has Fallen at -47.59%
- RAW MATERIAL COST(Y) Grown by 23.76% (YoY)
5
With ROE of 7.31%, it has a very attractive valuation with a 1.48 Price to Book Value
- Over the past year, while the stock has generated a return of -22.40%, its profits have risen by 14.4% ; the PEG ratio of the company is 1.4
- At the current price, the company has a high dividend yield of 3.4
How much should you hold?
- Overall Portfolio exposure to DLG Exhibitions & Events Corp. Ltd. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DLG Exhibitions & Events Corp. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
DLG Exhibitions & Events Corp. Ltd.
-21.07%
0.84
41.51%
China Shanghai Composite
3.0%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.99%
EBIT Growth (5y)
74.87%
EBIT to Interest (avg)
8.14
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
0.36
Tax Ratio
24.66%
Dividend Payout Ratio
66.70%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.90%
ROE (avg)
6.06%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
1.48
EV to EBIT
16.00
EV to EBITDA
11.96
EV to Capital Employed
2.00
EV to Sales
2.56
PEG Ratio
1.42
Dividend Yield
3.43%
ROCE (Latest)
12.51%
ROE (Latest)
7.31%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 7.65 times
-12What is not working for the Company
NET SALES(Q)
At CNY 291.88 MM has Fallen at -28.75%
NET PROFIT(Q)
At CNY 37.75 MM has Fallen at -47.59%
RAW MATERIAL COST(Y)
Grown by 23.76% (YoY
PRE-TAX PROFIT(Q)
At CNY 55.09 MM has Fallen at -38.01%
Here's what is working for DLG Exhibitions & Events Corp. Ltd.
Debtors Turnover Ratio
Highest at 7.65 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
At CNY 29.84 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for DLG Exhibitions & Events Corp. Ltd.
Net Sales
At CNY 291.88 MM has Fallen at -28.75%
over average net sales of the previous four periods of CNY 409.66 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Profit
At CNY 37.75 MM has Fallen at -47.59%
over average net sales of the previous four periods of CNY 72.03 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 55.09 MM has Fallen at -38.01%
over average net sales of the previous four periods of CNY 88.86 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Raw Material Cost
Grown by 23.76% (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
Non Operating Income
Highest at CNY 0.67 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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