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

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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 -11.21% and Operating profit at -150.53% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -62.75 MM has Grown at -118.78%
OPERATING CASH FLOW(Y) Lowest at CNY -66.12 MM
ROCE(HY) Lowest at -17.01%

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 8.27%, its profits have fallen by -233.7%

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.

-1.29%

0.73

41.63%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.21%

EBIT Growth (5y)

-150.53%

EBIT to Interest (avg)

-54.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.36

Tax Ratio

31.49%

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

3.13

EV to EBIT

-11.05

EV to EBITDA

-12.50

EV to Capital Employed

4.40

EV to Sales

6.95

PEG Ratio

Dividend Yield

ROCE (Latest)

-39.85%

ROE (Latest)

-29.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -200.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.84%

OPERATING PROFIT(Q)

Highest at CNY -11.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at -26.26 %

NET PROFIT(Q)

At CNY -5.93 MM has Grown at 64.67%

EPS(Q)

Highest at CNY 0.04

-17What is not working for the Company

NET PROFIT(HY)

At CNY -62.75 MM has Grown at -118.78%

OPERATING CASH FLOW(Y)

Lowest at CNY -66.12 MM

ROCE(HY)

Lowest at -17.01%

NET SALES(Q)

At CNY 42.92 MM has Fallen at -15.04%

CASH AND EQV(HY)

Lowest at CNY 465.81 MM

DEBT-EQUITY RATIO (HY)

Highest at -42.47 %

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

Operating Profit

Highest at CNY -11.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at -26.26 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CNY -5.93 MM has Grown at 64.67%

over average net sales of the previous four periods of CNY -16.78 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 1.84%

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 -200.83% (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.

Operating Cash Flow

Lowest at CNY -66.12 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)

Net Sales

At CNY 42.92 MM has Fallen at -15.04%

over average net sales of the previous four periods of CNY 50.51 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 465.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -42.47 %

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