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

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 8.63% and Operating profit at 4.84% 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 8.63% and Operating profit at 4.84% over the last 5 years

Flat results in Sep 25

PRE-TAX PROFIT(Q) At CNY 140.28 MM has Fallen at -67.81%
INTEREST COVERAGE RATIO(Q) Lowest at 250.22
DEBT-EQUITY RATIO (HY) Highest at 48.36 %

With ROE of 8.25%, it has a fair valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -23.11%, its profits have risen by 4.8% ; the PEG ratio of the company is 3.1
At the current price, the company has a high dividend yield of 1.8

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 17.07% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.11% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangxi Liugong Machinery Co., Ltd.

-23.11%

-0.52

34.32%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.63%

EBIT Growth (5y)

4.84%

EBIT to Interest (avg)

4.54

Debt to EBITDA (avg)

5.30

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.87

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

1.21

EV to EBIT

17.80

EV to EBITDA

12.45

EV to Capital Employed

1.14

EV to Sales

0.95

PEG Ratio

3.07

Dividend Yield

1.78%

ROCE (Latest)

6.40%

ROE (Latest)

8.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4% (YoY

NET PROFIT(9M)

Higher at CNY 1,451.94 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.04 times

-9What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 140.28 MM has Fallen at -67.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 250.22

DEBT-EQUITY RATIO (HY)

Highest at 48.36 %

OPERATING PROFIT(Q)

Lowest at CNY 188.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.49 %

NET PROFIT(Q)

At CNY 224.08 MM has Fallen at -41.57%

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

Inventory Turnover Ratio

Highest at 3.04 times

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 -4% (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.

Pre-Tax Profit

At CNY 140.28 MM has Fallen at -67.81%

over average net sales of the previous four periods of CNY 435.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest Coverage Ratio

Lowest at 250.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 188.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 224.08 MM has Fallen at -41.57%

over average net sales of the previous four periods of CNY 383.51 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 48.36 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio