Lafang China Co., Ltd. (603630) 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

Lafang China Co., Ltd.

Why is Lafang China Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.96%

The company has been able to generate a Return on Capital Employed (avg) of 5.96% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.69% and Operating profit at -38.11% over the last 5 years

Negative results in Sep 25

INTEREST(9M) At CNY 0.07 MM has Grown at inf%
NET PROFIT(Q) At CNY 5.62 MM has Fallen at -67.83%
OPERATING CASH FLOW(Y) Lowest at CNY 64.49 MM

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 26.62%, its profits have fallen by -70.2%
At the current price, the company has a high dividend yield of 0.6

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 FMCG)

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

Is Lafang China Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lafang China Co., Ltd.

11.06%

0.97

60.51%

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)

-1.69%

EBIT Growth (5y)

-38.11%

EBIT to Interest (avg)

32.71

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.45

Tax Ratio

9.31%

Dividend Payout Ratio

75.39%

Pledged Shares

Institutional Holding

ROCE (avg)

5.96%

ROE (avg)

2.77%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

317

Industry P/E

Price to Book Value

2.85

EV to EBIT

316.82

EV to EBITDA

151.64

EV to Capital Employed

5.25

EV to Sales

5.02

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

1.66%

ROE (Latest)

0.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.96 times

RAW MATERIAL COST(Y)

Fallen by -0.41% (YoY

-18What is not working for the Company

INTEREST(9M)

At CNY 0.07 MM has Grown at inf%

NET PROFIT(Q)

At CNY 5.62 MM has Fallen at -67.83%

OPERATING CASH FLOW(Y)

Lowest at CNY 64.49 MM

ROCE(HY)

Lowest at -0.04%

PRE-TAX PROFIT(Q)

At CNY 10.36 MM has Fallen at -48.81%

CASH AND EQV(HY)

Lowest at CNY 2,129.93 MM

DEBT-EQUITY RATIO (HY)

Highest at -54.72 %

Here's what is working for Lafang China Co., Ltd.

Inventory Turnover Ratio

Highest at 3.96 times and Grown

In each half year 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 -0.41% (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 Lafang China Co., Ltd.

Interest

At CNY 0.07 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 5.62 MM has Fallen at -67.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 10.36 MM has Fallen at -48.81%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 64.49 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 2,129.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -54.72 %

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