Guangxi Liugong Machinery Co., Ltd. (000528) 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

Guangxi Liugong Machinery Co., Ltd.

Why is Guangxi Liugong Machinery 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 9.30% and Operating profit at 7.44% 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 7.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.30% and Operating profit at 7.44% over the last 5 years

Negative results in Mar 25

INTEREST(Q) At CNY 78.05 MM has Grown at 20.88%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.37%

With ROE of 8.25%, it has a fair valuation with a 0.85 Price to Book Value

Over the past year, while the stock has generated a return of -7.51%, its profits have risen by 4.8% ; the PEG ratio of the company is 2.2
At the current price, the company has a high dividend yield of 2.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.51% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangxi Liugong Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Guangxi Liugong Machinery Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangxi Liugong Machinery Co., Ltd.

8.85%

0.13

37.13%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.30%

EBIT Growth (5y)

7.44%

EBIT to Interest (avg)

4.54

Debt to EBITDA (avg)

5.30

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.86

Tax Ratio

16.58%

Dividend Payout Ratio

40.01%

Pledged Shares

Institutional Holding

ROCE (avg)

4.79%

ROE (avg)

7.44%

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

0.85

EV to EBIT

14.04

EV to EBITDA

9.82

EV to Capital Employed

0.90

EV to Sales

0.75

PEG Ratio

2.16

Dividend Yield

2.52%

ROCE (Latest)

6.40%

ROE (Latest)

8.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

12What is working for the Company

ROCE(HY)

Highest at 8.49%

INTEREST COVERAGE RATIO(Q)

Highest at 913.93

RAW MATERIAL COST(Y)

Fallen by -4.77% (YoY

NET SALES(Q)

Highest at CNY 9,106.48 MM

PRE-TAX PROFIT(Q)

Highest at CNY 781.66 MM

NET PROFIT(Q)

Highest at CNY 650.49 MM

EPS(Q)

Highest at CNY 0.29

-3What is not working for the Company

INTEREST(Q)

At CNY 78.05 MM has Grown at 20.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.37%

Here's what is working for Guangxi Liugong Machinery Co., Ltd.

Interest Coverage Ratio

Highest at 913.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 9,106.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 9,106.48 MM has Grown at 21.98%

over average net sales of the previous four periods of CNY 7,465.49 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 781.66 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 781.66 MM has Grown at 92.85%

over average net sales of the previous four periods of CNY 405.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 650.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 650.49 MM has Grown at 95.28%

over average net sales of the previous four periods of CNY 333.11 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -4.77% (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 Guangxi Liugong Machinery Co., Ltd.

Interest

At CNY 78.05 MM has Grown at 20.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.37%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio