Henan Liliang Diamond 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

Henan Liliang Diamond Co., Ltd.

Why is Henan Liliang Diamond Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.72% and Operating profit at -171.22% over the last 5 years

With a growth in Net Profit of 147.1%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At CNY 50.5 MM has Grown at 337.62%
NET PROFIT(Q) At CNY 34.27 MM has Grown at 212.33%
NET SALES(Q) At CNY 184.02 MM has Grown at 57.84%

With ROE of 1.13%, it has a fair valuation with a 2.48 Price to Book Value

Over the past year, while the stock has generated a return of 128.33%, its profits have fallen by -77.4%

Market Beating Performance

The stock has generated a return of 128.33% in the last 1 year, much higher than market (China Shanghai Composite) returns of 21.68%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Henan Liliang Diamond Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Henan Liliang Diamond Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Liliang Diamond Co., Ltd.

128.33%

2.14

56.92%

China Shanghai Composite

21.68%

1.63

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.72%

EBIT Growth (5y)

-171.22%

EBIT to Interest (avg)

66.11

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.11

Tax Ratio

13.37%

Dividend Payout Ratio

93.11%

Pledged Shares

Institutional Holding

ROCE (avg)

20.11%

ROE (avg)

11.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

219

Industry P/E

Price to Book Value

2.48

EV to EBIT

-213.91

EV to EBITDA

92.29

EV to Capital Employed

4.43

EV to Sales

18.50

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.07%

ROE (Latest)

1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

27What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 50.5 MM has Grown at 337.62%

NET PROFIT(Q)

At CNY 34.27 MM has Grown at 212.33%

NET SALES(Q)

At CNY 184.02 MM has Grown at 57.84%

RAW MATERIAL COST(Y)

Fallen by -341.63% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.46 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 623.3

DEBT-EQUITY RATIO (HY)

Highest at -53.88 %

INTEREST(Q)

Highest at CNY 5.36 MM

OPERATING PROFIT(Q)

Lowest at CNY 33.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.17 %

Here's what is working for Henan Liliang Diamond Co., Ltd.

Pre-Tax Profit

At CNY 50.5 MM has Grown at 337.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.27 MM has Grown at 212.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 184.02 MM has Grown at 57.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 6.46 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -341.63% (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 Henan Liliang Diamond Co., Ltd.

Interest

At CNY 5.36 MM has Grown at 16.15%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 623.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 5.36 MM

in the last five periods and Increased by 16.15% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 33.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -53.88 %

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