Fujian Longking Co., Ltd. (600388) 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

Fujian Longking Co., Ltd.

Why is Fujian Longking Co., Ltd. ?

Positive results in Sep 25

NET SALES(Q) At CNY 3,174.64 MM has Grown at 60.16%
INVENTORY TURNOVER RATIO(HY) Highest at 1.58 times
DEBTORS TURNOVER RATIO(HY) Highest at 2.01 times

With ROE of 8.13%, it has a very attractive valuation with a 1.77 Price to Book Value

Over the past year, while the stock has generated a return of 54.77%, its profits have fallen by -4.2%
At the current price, the company has a high dividend yield of 1.7

Market Beating Performance

The stock has generated a return of 54.77% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Fujian Longking Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Fujian Longking Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Longking Co., Ltd.

27.17%

2.60

27.83%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.04%

EBIT Growth (5y)

7.80%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.27

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.72

Tax Ratio

15.26%

Dividend Payout Ratio

43.13%

Pledged Shares

Institutional Holding

ROCE (avg)

9.91%

ROE (avg)

12.65%

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

1.56

EV to EBIT

16.57

EV to EBITDA

12.65

EV to Capital Employed

1.42

EV to Sales

1.74

PEG Ratio

0.31

Dividend Yield

2.34%

ROCE (Latest)

8.55%

ROE (Latest)

10.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

15What is working for the Company

NET SALES(HY)

At CNY 6,388.63 MM has Grown at 19.84%

NET PROFIT(HY)

At CNY 602.58 MM has Grown at 63.71%

ROCE(HY)

Highest at 10.85%

RAW MATERIAL COST(Y)

Fallen by -6.15% (YoY

CASH AND EQV(HY)

Highest at CNY 6,762.89 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.68 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.17 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,529.53 MM

INTEREST(Q)

At CNY 25.61 MM has Grown at 39.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,099.48

OPERATING PROFIT(Q)

Lowest at CNY 281.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.86 %

Here's what is working for Fujian Longking Co., Ltd.

Net Sales

At CNY 6,388.63 MM has Grown at 19.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 602.58 MM has Grown at 63.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,762.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -6.15% (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 Fujian Longking Co., Ltd.

Interest

At CNY 25.61 MM has Grown at 39.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,099.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 1,529.53 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 281.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales