Guangdong Liantai Environmental Protection Co., Ltd. (603797) 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

Guangdong Liantai Environmental Protection Co., Ltd.

Why is Guangdong Liantai Environmental Protection Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.44% and Operating profit at 2.81% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.44% and Operating profit at 2.81% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY 59.79 MM has Grown at -46.13%
ROCE(HY) Lowest at 3.9%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.6 times

With ROE of 4.89%, it has a very expensive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of 25.44%, its profits have fallen by -25.9%

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 Construction)

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

Is Guangdong Liantai Environmental Protection Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Liantai Environmental Protection Co., Ltd.

14.18%

1.85

27.32%

China Shanghai Composite

16.01%

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)

11.44%

EBIT Growth (5y)

2.81%

EBIT to Interest (avg)

2.27

Debt to EBITDA (avg)

8.45

Net Debt to Equity (avg)

1.59

Sales to Capital Employed (avg)

0.13

Tax Ratio

21.12%

Dividend Payout Ratio

28.89%

Pledged Shares

Institutional Holding

ROCE (avg)

6.29%

ROE (avg)

9.67%

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

0.81

EV to EBIT

17.40

EV to EBITDA

12.55

EV to Capital Employed

0.93

EV to Sales

7.75

PEG Ratio

Dividend Yield

1.98%

ROCE (Latest)

5.33%

ROE (Latest)

4.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly 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 461.06 MM

DEBT-EQUITY RATIO (HY)

Lowest at 163.86 %

RAW MATERIAL COST(Y)

Fallen by -0.15% (YoY

-16What is not working for the Company

NET PROFIT(HY)

At CNY 59.79 MM has Grown at -46.13%

ROCE(HY)

Lowest at 3.9%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.6 times

INTEREST COVERAGE RATIO(Q)

Lowest at 179.24

CASH AND EQV(HY)

Lowest at CNY 96.09 MM

OPERATING PROFIT(Q)

Lowest at CNY 97.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 40.82 %

Here's what is working for Guangdong Liantai Environmental Protection Co., Ltd.

Operating Cash Flow

Highest at CNY 461.06 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 163.86 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.15% (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 Guangdong Liantai Environmental Protection Co., Ltd.

Net Profit

At CNY 59.79 MM has Grown at -46.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 179.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 0.6 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 97.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 40.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 96.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents