L&K Engineering (Suzhou) Co., Ltd. (603929) 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

L&K Engineering (Suzhou) Co., Ltd.

Why is L&K Engineering (Suzhou) Co., Ltd. ?

With ROE of 30.86%, it has a very attractive valuation with a 5.26 Price to Book Value

Over the past year, while the stock has generated a return of 289.16%, its profits have risen by 24.2% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 4.5

Consistent Returns over the last 3 years

Along with generating 289.16% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to L&K Engineering (Suzhou) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is L&K Engineering (Suzhou) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

L&K Engineering (Suzhou) Co., Ltd.

332.59%

6.91

63.48%

China Shanghai Composite

8.25%

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)

36.71%

EBIT Growth (5y)

99.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.78

Sales to Capital Employed (avg)

2.61

Tax Ratio

16.77%

Dividend Payout Ratio

63.37%

Pledged Shares

Institutional Holding

ROCE (avg)

11.19%

ROE (avg)

15.02%

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

22.03

EV to EBIT

41.83

EV to EBITDA

41.64

EV to Capital Employed

-59.40

EV to Sales

10.04

PEG Ratio

0.72

Dividend Yield

1.02%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

41.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

29What is working for the Company

NET PROFIT(Q)

At CNY 243.51 MM has Grown at 207.86%

ROCE(HY)

Highest at 58.13%

NET SALES(Q)

At CNY 1,417.29 MM has Grown at 67.08%

PRE-TAX PROFIT(Q)

At CNY 294.38 MM has Grown at 187.3%

RAW MATERIAL COST(Y)

Fallen by -17.48% (YoY

CASH AND EQV(HY)

Highest at CNY 6,705.01 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 720.12 times

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 657.64 MM

DEBT-EQUITY RATIO (HY)

Highest at -129.81 %

Here's what is working for L&K Engineering (Suzhou) Co., Ltd.

Net Profit

At CNY 243.51 MM has Grown at 207.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,417.29 MM has Grown at 67.08%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 294.38 MM has Grown at 187.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,705.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 720.12 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 -17.48% (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 L&K Engineering (Suzhou) Co., Ltd.

Operating Cash Flow

Lowest at CNY 657.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -129.81 %

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