Focus Lightings Tech Co., Ltd. (300708) 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

Focus Lightings Tech Co., Ltd.

Why is Focus Lightings Tech Co., Ltd. ?

With a fall in Net Profit of -7.51%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At CNY 0.09 MM has Grown at 41.41%
OPERATING CASH FLOW(Y) Lowest at CNY 123.42 MM
ROCE(HY) Lowest at 6.21%

Below par performance in long term as well as near term

Along with generating -33.36% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Other Electrical Equipment)

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

Is Focus Lightings Tech Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Focus Lightings Tech Co., Ltd.

-39.37%

-0.21

54.12%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.08%

EBIT Growth (5y)

18.10%

EBIT to Interest (avg)

91.06

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.64

Tax Ratio

10.99%

Dividend Payout Ratio

10.71%

Pledged Shares

Institutional Holding

ROCE (avg)

4.70%

ROE (avg)

6.00%

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

2.66

EV to EBIT

51.24

EV to EBITDA

25.39

EV to Capital Employed

2.57

EV to Sales

2.80

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

5.01%

ROE (Latest)

5.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

INTEREST COVERAGE RATIO(Q)

Highest at 267,079.01

OPERATING PROFIT MARGIN(Q)

Highest at 23.52 %

RAW MATERIAL COST(Y)

Fallen by -122.98% (YoY

OPERATING PROFIT(Q)

Highest at CNY 112.05 MM

-28What is not working for the Company

INTEREST(9M)

At CNY 0.13 MM has Grown at 13.86%

NET SALES(Q)

At CNY 476.37 MM has Fallen at -32.31%

OPERATING CASH FLOW(Y)

Lowest at CNY -59.66 MM

NET PROFIT(HY)

At CNY 79.75 MM has Grown at -31.82%

ROCE(HY)

Lowest at 5.79%

DEBT-EQUITY RATIO (HY)

Highest at 11.65 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.6 times

Here's what is working for Focus Lightings Tech Co., Ltd.

Interest Coverage Ratio

Highest at 267,079.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 23.52 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Profit

Highest at CNY 112.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Raw Material Cost

Fallen by -122.98% (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 Focus Lightings Tech Co., Ltd.

Net Sales

At CNY 476.37 MM has Fallen at -32.31%

over average net sales of the previous four periods of CNY 703.74 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 0.13 MM has Grown at 13.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 79.75 MM has Grown at -31.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 11.65 % 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

Operating Cash Flow

Lowest at CNY -59.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio