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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fujian Longking Co., Ltd.

Why is Fujian Longking Co., Ltd. ?

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 2,058.13 MM
RAW MATERIAL COST(Y) Fallen by -20.68% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 25.73 %

With ROE of 8.13%, it has a attractive valuation with a 1.41 Price to Book Value

Over the past year, while the stock has generated a return of 26.94%, its profits have fallen by -4.2%
At the current price, the company has a high dividend yield of 2.1

Market Beating Performance

The stock has generated a return of 26.94% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

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.

28.55%

1.41

25.92%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.15%

EBIT Growth (5y)

0.10%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.27

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.77

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

1.41

EV to EBIT

18.69

EV to EBITDA

11.63

EV to Capital Employed

1.37

EV to Sales

1.59

PEG Ratio

Dividend Yield

2.08%

ROCE (Latest)

7.32%

ROE (Latest)

8.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,058.13 MM

RAW MATERIAL COST(Y)

Fallen by -20.68% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 25.73 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.39%

-10What is not working for the Company

INTEREST(Q)

At CNY 29.73 MM has Grown at 116.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 638.73

NET SALES(Q)

Lowest at CNY 1,949.66 MM

OPERATING PROFIT(Q)

Lowest at CNY 189.88 MM

EPS(Q)

Lowest at CNY 0.15

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

Operating Cash Flow

Highest at CNY 2,058.13 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 25.73 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.39%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -20.68% (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 29.73 MM has Grown at 116.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 638.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,949.66 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -13.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 189.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

EPS

Lowest at CNY 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)