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.

61.66%

2.60

27.83%

China Shanghai Composite

24.7%

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)

2.26%

EBIT Growth (5y)

1.15%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.27

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.76

Tax Ratio

15.26%

Dividend Payout Ratio

36.36%

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

1.77

EV to EBIT

23.04

EV to EBITDA

14.34

EV to Capital Employed

1.69

EV to Sales

1.96

PEG Ratio

Dividend Yield

1.66%

ROCE (Latest)

7.32%

ROE (Latest)

8.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

13What is working for the Company

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

PRE-TAX PROFIT(Q)

Highest at CNY 382.17 MM

NET PROFIT(Q)

Highest at CNY 334.93 MM

EPS(Q)

Highest at CNY 0.27

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 10.04% (YoY

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

Net Sales

At CNY 3,174.64 MM has Grown at 60.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 382.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 382.17 MM has Grown at 54.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 334.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 334.93 MM has Grown at 54.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 1.58 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 2.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Fujian Longking Co., Ltd.

Raw Material Cost

Grown by 10.04% (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