ScoreWhy is Lancy Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 15.25% and Operating profit at 55.43% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 7.00% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at CNY 458.2 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 750.02
- OPERATING PROFIT(Q) Lowest at CNY 145.93 MM
3
With ROE of 31.84%, it has a attractive valuation with a 2.28 Price to Book Value
- Over the past year, while the stock has generated a return of -17.05%, its profits have risen by 288.1% ; the PEG ratio of the company is 0
- At the current price, the company has a high dividend yield of 2.3
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.05% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lancy Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lancy Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lancy Co., Ltd.
-17.05%
-0.31
38.98%
China Shanghai Composite
22.54%
1.68
13.39%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.25%
EBIT Growth (5y)
55.43%
EBIT to Interest (avg)
3.38
Debt to EBITDA (avg)
1.44
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
1.23
Tax Ratio
24.92%
Dividend Payout Ratio
53.13%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.26%
ROE (avg)
7.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
2.28
EV to EBIT
19.53
EV to EBITDA
12.45
EV to Capital Employed
2.12
EV to Sales
1.41
PEG Ratio
0.02
Dividend Yield
2.28%
ROCE (Latest)
10.87%
ROE (Latest)
31.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.7% (YoY
NET PROFIT(9M)
Higher at CNY 817.64 MM
CASH AND EQV(HY)
Highest at CNY 2,283.64 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 25.87 times
-10What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 458.2 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 750.02
OPERATING PROFIT(Q)
Lowest at CNY 145.93 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.07 %
NET PROFIT(Q)
Fallen at -28.81%
Here's what is working for Lancy Co., Ltd.
Cash and Eqv
Highest at CNY 2,283.64 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 25.87 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.7% (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 Lancy Co., Ltd.
Operating Cash Flow
Lowest at CNY 458.2 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest Coverage Ratio
Lowest at 750.02
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 145.93 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 9.07 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Fallen at -28.81%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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