Lancy Co., Ltd. (002612) 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

Lancy Co., Ltd.

Why is Lancy Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 14.34% and Operating profit at 32.74% 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

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

With ROE of 31.48%, it has a attractive valuation with a 1.01 Price to Book Value

Over the past year, while the stock has generated a return of -32.08%, its profits have risen by 248.3% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 15.7

Below par performance in long term as well as near term

Along with generating -32.08% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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.

-1.49%

-0.64

37.27%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.34%

EBIT Growth (5y)

32.74%

EBIT to Interest (avg)

4.17

Debt to EBITDA (avg)

1.25

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.22

Tax Ratio

19.57%

Dividend Payout Ratio

53.13%

Pledged Shares

Institutional Holding

ROCE (avg)

8.73%

ROE (avg)

7.00%

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

1.50

EV to EBIT

11.09

EV to EBITDA

7.31

EV to Capital Employed

1.42

EV to Sales

0.91

PEG Ratio

0.02

Dividend Yield

10.61%

ROCE (Latest)

12.76%

ROE (Latest)

31.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,405.62

PRE-TAX PROFIT(Q)

At CNY 189.2 MM has Grown at 162.25%

RAW MATERIAL COST(Y)

Fallen by -7.32% (YoY

CASH AND EQV(HY)

Highest at CNY 1,870.72 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.25 times

DEBTORS TURNOVER RATIO(HY)

Highest at 27.14 times

OPERATING PROFIT(Q)

Highest at CNY 290.38 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.15 %

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 497.34 MM

NET PROFIT(Q)

At CNY 66.31 MM has Fallen at -63.22%

DEBT-EQUITY RATIO (HY)

Highest at 67.88 %

Here's what is working for Lancy Co., Ltd.

Interest Coverage Ratio

Highest at 1,405.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CNY 189.2 MM has Grown at 162.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Profit

Highest at CNY 290.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 18.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 1,870.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.25 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 27.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.32% (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.

Net Profit

At CNY 66.31 MM has Fallen at -63.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 497.34 MM and Fallen

In each year 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 67.88 %

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

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