Lanzhou Lishang Guochao Industrial Group Co., Ltd. (600738) 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 Lishang Guochao Industrial Group Co., Ltd.

Why is Lanzhou Lishang Guochao Industrial Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -13.43% and Operating profit at -3.75% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

CASH AND EQV(HY) Lowest at CNY 332.64 MM

With ROE of 2.91%, it has a expensive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of -1.57%, its profits have fallen by -41.9%
At the current price, the company has a high dividend yield of 0.2

Below par performance in long term as well as near term

Along with generating -1.57% 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 Lanzhou Lishang Guochao Industrial Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lanzhou Lishang Guochao Industrial Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Lanzhou Lishang Guochao Industrial Group Co., Ltd.

-8.08%

0.69

39.73%

China Shanghai Composite

15.45%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.43%

EBIT Growth (5y)

-3.75%

EBIT to Interest (avg)

5.99

Debt to EBITDA (avg)

1.04

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.28

Tax Ratio

61.37%

Dividend Payout Ratio

15.20%

Pledged Shares

Institutional Holding

ROCE (avg)

8.23%

ROE (avg)

4.49%

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

1.89

EV to EBIT

20.35

EV to EBITDA

11.99

EV to Capital Employed

1.78

EV to Sales

6.79

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

8.74%

ROE (Latest)

2.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.37% (YoY

NET PROFIT(9M)

Higher at CNY 115.92 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.19 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.27 times

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 332.64 MM

Here's what is working for Lanzhou Lishang Guochao Industrial Group Co., Ltd.

Debt-Equity Ratio

Lowest at 11.19 %

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 5.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 115.92 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -3.37% (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.

Cash and Eqv

Lowest at CNY 332.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents