Guangzhou Lushan New Materials 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 Lushan New Materials Co., Ltd.

Why is Guangzhou Lushan New Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.01%

The company has been able to generate a Return on Capital Employed (avg) of 3.01% signifying low profitability per unit of total capital (equity and debt)

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 -13.38% and Operating profit at -148.39% 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 2.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -13.38% and Operating profit at -148.39% over the last 5 years

PRE-TAX PROFIT(Q) At CNY -7.35 MM has Fallen at -208.02%
NET PROFIT(Q) At CNY -4.09 MM has Fallen at -2,530.24%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.67 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.88%, its profits have fallen by -82.8%

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 Specialty Chemicals)

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

Is Guangzhou Lushan New Materials Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Lushan New Materials Co., Ltd.

-17.34%

-0.00

52.02%

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)

-13.38%

EBIT Growth (5y)

-148.39%

EBIT to Interest (avg)

2.13

Debt to EBITDA (avg)

10.09

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.96

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

174.28%

Pledged Shares

Institutional Holding

ROCE (avg)

3.01%

ROE (avg)

2.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

1714

Industry P/E

Price to Book Value

2.18

EV to EBIT

-264.02

EV to EBITDA

40.17

EV to Capital Employed

2.17

EV to Sales

2.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.82%

ROE (Latest)

0.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 485.91 MM

RAW MATERIAL COST(Y)

Fallen by -63.57% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -7.56 %

-27What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -7.35 MM has Fallen at -208.02%

NET PROFIT(Q)

At CNY -4.09 MM has Fallen at -2,530.24%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.67 times

NET SALES(Q)

Fallen at -14.03%

OPERATING PROFIT(Q)

Lowest at CNY -6.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.41 %

Here's what is working for Guangzhou Lushan New Materials Co., Ltd.

Operating Cash Flow

Highest at CNY 485.91 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 -7.56 %

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 -63.57% (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 Lushan New Materials Co., Ltd.

Pre-Tax Profit

At CNY -7.35 MM has Fallen at -208.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.09 MM has Fallen at -2,530.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.67 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

Net Sales

Fallen at -14.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -6.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales