Lam Soon (Hong Kong) Ltd. (411) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lam Soon (Hong Kong) Ltd.

Fufeng Group Ltd.

Vedan International (Holdings) Ltd.

Tianyun International Holdings Ltd.

Weilong Delicious Global Holdings Ltd.

Nissin Foods Co., Ltd.

Yantai North Andre Juice Co., Ltd.

Qinqin Foodstuffs Group (Cayman) Co. Ltd.

Huabao International Holdings Ltd.

Zhengwei Group Holdings Co., Ltd.

Four Seas Mercantile Holdings Ltd.

Why is Lam Soon (Hong Kong) Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -3.07% of over the last 5 years

Flat results in Dec 24

INTEREST(HY) At HKD 0.16 MM has Grown at 24.43%
DEBTORS TURNOVER RATIO(HY) Lowest at 11.46%

With ROE of 8.64%, it has a Attractive valuation with a 0.90 Price to Book Value

Over the past year, while the stock has generated a return of 37.33%, its profits have risen by 51.9% ; the PEG ratio of the company is 0.2

Market Beating Performance

The stock has generated a return of 37.33% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 26.67%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lam Soon (Hong Kong) Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Lam Soon (Hong Kong) Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Lam Soon (Hong Kong) Ltd.

37.33%

0.58

38.31%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.16%

EBIT Growth (5y)

-3.07%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.63

Sales to Capital Employed (avg)

1.83

Tax Ratio

18.82%

Dividend Payout Ratio

37.19%

Pledged Shares

Institutional Holding

ROCE (avg)

18.93%

ROE (avg)

8.38%

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

0.90

EV to EBIT

3.07

EV to EBITDA

2.40

EV to Capital Employed

0.72

EV to Sales

0.17

PEG Ratio

0.20

Dividend Yield

0.18%

ROCE (Latest)

23.57%

ROE (Latest)

8.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Lam Soon (Hong Kong) Ltd.

Interest Coverage Ratio

Highest at 147,754.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at HKD 708.95 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Operating Profit

Highest at HKD 240.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 8.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 233.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 188.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 1,896.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -62.53 %

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 -45.88% (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 Lam Soon (Hong Kong) Ltd.

Interest

At HKD 0.16 MM has Grown at 24.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debtors Turnover Ratio

Lowest at 11.46%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio