Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd. (600363) 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

Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd.

Why is Jiangxi Lianchuang Optoelectronic Science & Tech 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 -4.56% and Operating profit at -201.44% 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 9.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.56% and Operating profit at -201.44% over the last 5 years

Flat results in Sep 25

INTEREST(Q) At CNY 22.73 MM has Grown at inf%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.07 times

With ROE of 7.53%, it has a very expensive valuation with a 6.26 Price to Book Value

Over the past year, while the stock has generated a return of 11.18%, its profits have fallen by -17.6%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 11.18% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd.

-48.58%

2.34

46.31%

China Shanghai Composite

16.78%

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)

-5.10%

EBIT Growth (5y)

17.99%

EBIT to Interest (avg)

-0.34

Debt to EBITDA (avg)

10.19

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.50

Tax Ratio

21.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.68%

ROE (avg)

9.47%

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

3.43

EV to EBIT

122.91

EV to EBITDA

67.79

EV to Capital Employed

3.41

EV to Sales

4.94

PEG Ratio

0.44

Dividend Yield

0.16%

ROCE (Latest)

2.78%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

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

14What is working for the Company

NET PROFIT(HY)

At CNY 162.44 MM has Grown at 562.36%

ROCE(HY)

Highest at 10.15%

CASH AND EQV(HY)

Highest at CNY 5,198.29 MM

DEBT-EQUITY RATIO (HY)

Lowest at 0.8 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.1 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.55 times

-16What is not working for the Company

INTEREST(Q)

At CNY 28.35 MM has Grown at 85.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 25.24

RAW MATERIAL COST(Y)

Grown by 11.31% (YoY

NET SALES(Q)

Lowest at CNY 611.75 MM

OPERATING PROFIT(Q)

Lowest at CNY 7.16 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.17 %

PRE-TAX PROFIT(Q)

Lowest at CNY -14.84 MM

NET PROFIT(Q)

At CNY 82.67 MM has Fallen at -31.08%

Here's what is working for Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd.

Cash and Eqv

Highest at CNY 5,198.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 0.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Jiangxi Lianchuang Optoelectronic Science & Tech Co., Ltd.

Net Sales

At CNY 611.75 MM has Fallen at -26.79%

over average net sales of the previous four periods of CNY 835.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -14.84 MM has Fallen at -159.41%

over average net sales of the previous four periods of CNY 24.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 28.35 MM has Grown at 85.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 25.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 611.75 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 7.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -14.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 82.67 MM has Fallen at -31.08%

over average net sales of the previous four periods of CNY 119.95 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 11.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales