Guangzhou Lingwe Technology Co., Ltd. () 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

Guangzhou Lingwe Technology Co., Ltd.

Why is Guangzhou Lingwe Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.39% and Operating profit at 15.35% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 0.48 MM has Grown at 123.28%
DEBT-EQUITY RATIO (HY) Highest at -25.8 %
INVENTORY TURNOVER RATIO(HY) Lowest at 6.32 times

With ROE of 8.60%, it has a very attractive valuation with a 1.76 Price to Book Value

Over the past year, while the stock has generated a return of 471.08%, its profits have risen by 6.8% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 0.4

Market Beating performance in long term as well as near term

Along with generating 471.08% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Lingwe Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Guangzhou Lingwe Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Lingwe Technology Co., Ltd.

471.08%

7.44

79.52%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.39%

EBIT Growth (5y)

15.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

0.30

Tax Ratio

18.43%

Dividend Payout Ratio

39.52%

Pledged Shares

Institutional Holding

ROCE (avg)

18.83%

ROE (avg)

7.81%

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

1.76

EV to EBIT

16.90

EV to EBITDA

14.42

EV to Capital Employed

2.04

EV to Sales

4.72

PEG Ratio

3.04

Dividend Yield

0.42%

ROCE (Latest)

12.06%

ROE (Latest)

8.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 29,543.6

RAW MATERIAL COST(Y)

Fallen by -11.29% (YoY

NET SALES(Q)

Highest at CNY 148.49 MM

PRE-TAX PROFIT(Q)

Highest at CNY 46.62 MM

NET PROFIT(Q)

Highest at CNY 38.36 MM

EPS(Q)

Highest at CNY 0.35

-13What is not working for the Company

INTEREST(HY)

At CNY 0.48 MM has Grown at 123.28%

DEBT-EQUITY RATIO (HY)

Highest at -25.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.32 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.14 times

OPERATING PROFIT MARGIN(Q)

Lowest at 29.52 %

Here's what is working for Guangzhou Lingwe Technology Co., Ltd.

Interest Coverage Ratio

Highest at 29,543.6

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 148.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 148.49 MM has Grown at 35.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 46.62 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 38.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -11.29% (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 Guangzhou Lingwe Technology Co., Ltd.

Interest

At CNY 0.48 MM has Grown at 123.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -25.8 % and Grown

In each half year 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

Operating Profit Margin

Lowest at 29.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio