Lanzhou Huanghe Enterprise Co., Ltd. (000929) 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

Lanzhou Huanghe Enterprise Co., Ltd.

Why is Lanzhou Huanghe Enterprise Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 2.77% and Operating profit at -219.80% over the last 5 years

With a fall in Net Sales of -54.4%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 7 consecutive quarters
NET PROFIT(HY) At CNY -106.53 MM has Grown at -69.77%
INTEREST(HY) At CNY 0.57 MM has Grown at 251.86%
OPERATING CASH FLOW(Y) Lowest at CNY -275.78 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 3.14%, its profits have fallen by -148.6%

Underperformed the market in the last 1 year

The stock has generated a return of 3.14% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

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 Beverages)

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

Is Lanzhou Huanghe Enterprise Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lanzhou Huanghe Enterprise Co., Ltd.

15.2%

0.97

34.91%

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)

3.02%

EBIT Growth (5y)

-219.80%

EBIT to Interest (avg)

-105.64

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.49

Tax Ratio

0.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.34%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.87

EV to EBIT

-5.84

EV to EBITDA

-6.06

EV to Capital Employed

5.56

EV to Sales

4.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-95.23%

ROE (Latest)

-77.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

19What is working for the Company

NET SALES(HY)

At CNY 175.93 MM has Grown at 81.68%

RAW MATERIAL COST(Y)

Fallen by -76.49% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -70.09 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.39 times

OPERATING PROFIT MARGIN(Q)

Highest at -20.53 %

PRE-TAX PROFIT(Q)

At CNY -18.88 MM has Grown at 72.21%

NET PROFIT(Q)

At CNY -9.15 MM has Grown at 73.62%

-25What is not working for the Company

NET PROFIT(HY)

At CNY -25.82 MM has Grown at -119.31%

INTEREST(HY)

At CNY 1.18 MM has Grown at 280.98%

OPERATING CASH FLOW(Y)

Lowest at CNY -309.71 MM

ROCE(HY)

Lowest at -25.91%

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.37 times

Here's what is working for Lanzhou Huanghe Enterprise Co., Ltd.

Net Sales

At CNY 175.93 MM has Grown at 81.68%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Operating Profit Margin

Highest at -20.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY -18.88 MM has Grown at 72.21%

over average net sales of the previous four periods of CNY -67.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.15 MM has Grown at 73.62%

over average net sales of the previous four periods of CNY -34.68 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -70.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.39 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 -76.49% (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 Lanzhou Huanghe Enterprise Co., Ltd.

Interest

At CNY 1.18 MM has Grown at 280.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -309.71 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)

Debtors Turnover Ratio

Lowest at 11.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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