Why is Lanzhou Lishang Guochao Industrial Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -14.49% and Operating profit at -2.19% over the last 5 years
2
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(HY) At CNY 23.92 MM has Grown at -66.09%
- OPERATING CASH FLOW(Y) Lowest at CNY 146.25 MM
- NET SALES(HY) At CNY 308.49 MM has Grown at -13.88%
3
With ROE of 2.91%, it has a expensive valuation with a 1.04 Price to Book Value
- Over the past year, while the stock has generated a return of -13.06%, its profits have fallen by -41.9%
- At the current price, the company has a high dividend yield of 0.3
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.06% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lanzhou Lishang Guochao Industrial Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Lanzhou Lishang Guochao Industrial Group Co., Ltd.
-100.0%
0.63
46.20%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-14.49%
EBIT Growth (5y)
-2.19%
EBIT to Interest (avg)
5.99
Debt to EBITDA (avg)
1.04
Net Debt to Equity (avg)
0.19
Sales to Capital Employed (avg)
0.27
Tax Ratio
61.37%
Dividend Payout Ratio
15.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.23%
ROE (avg)
4.49%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
Price to Book Value
1.04
EV to EBIT
11.81
EV to EBITDA
6.96
EV to Capital Employed
1.03
EV to Sales
3.94
PEG Ratio
NA
Dividend Yield
0.30%
ROCE (Latest)
8.74%
ROE (Latest)
2.91%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -9.38% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 5.09%
-17What is not working for the Company
NET PROFIT(HY)
At CNY 23.92 MM has Grown at -66.09%
OPERATING CASH FLOW(Y)
Lowest at CNY 146.25 MM
NET SALES(HY)
At CNY 308.49 MM has Grown at -13.88%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.56%
Here's what is working for Lanzhou Lishang Guochao Industrial Group Co., Ltd.
Inventory Turnover Ratio
Highest at 5.09%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -9.38% (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 Lishang Guochao Industrial Group Co., Ltd.
Net Profit
At CNY 23.92 MM has Grown at -66.09%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
At CNY 308.49 MM has Grown at -13.88%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 146.25 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Lowest at 3.56%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






