ScoreWhy is Lanzhou LS Heavy Equipment Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.46%
- The company has been able to generate a Return on Capital Employed (avg) of 3.46% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 15.50% and Operating profit at 9.96% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 4.25% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 15.50% and Operating profit at 9.96% over the last 5 years
- NET PROFIT(Q) At CNY 14.55 MM has Fallen at -56.08%
- INTEREST COVERAGE RATIO(Q) Lowest at 46.57
- RAW MATERIAL COST(Y) Grown by 35.41% (YoY)
4
With ROE of 5.57%, it has a expensive valuation with a 3.12 Price to Book Value
- Over the past year, while the stock has generated a return of 59.62%, its profits have risen by 62.9% ; the PEG ratio of the company is 0.9
Real-Time Research ReportHow 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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lanzhou LS Heavy Equipment Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Lanzhou LS Heavy Equipment Co., Ltd.
-100.0%
1.65
55.34%
China Shanghai Composite
15.19%
1.01
14.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.50%
EBIT Growth (5y)
9.96%
EBIT to Interest (avg)
1.32
Debt to EBITDA (avg)
10.34
Net Debt to Equity (avg)
1.13
Sales to Capital Employed (avg)
0.64
Tax Ratio
0.46%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.46%
ROE (avg)
4.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
3.12
EV to EBIT
70.59
EV to EBITDA
38.20
EV to Capital Employed
1.96
EV to Sales
2.40
PEG Ratio
0.89
Dividend Yield
NA
ROCE (Latest)
2.77%
ROE (Latest)
5.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
NET PROFIT(HY)
At CNY 113.92 MM has Grown at 128.1%
OPERATING CASH FLOW(Y)
Highest at CNY 404.1 MM
NET SALES(Q)
At CNY 1,402.06 MM has Grown at 51.86%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.79%
-15What is not working for the Company
NET PROFIT(Q)
At CNY 14.55 MM has Fallen at -56.08%
INTEREST COVERAGE RATIO(Q)
Lowest at 46.57
RAW MATERIAL COST(Y)
Grown by 35.41% (YoY
CASH AND EQV(HY)
Lowest at CNY 2,159.55 MM
OPERATING PROFIT(Q)
Lowest at CNY 12.5 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.89 %
PRE-TAX PROFIT(Q)
Lowest at CNY 11.2 MM
EPS(Q)
Lowest at CNY 0.01
Here's what is working for Lanzhou LS Heavy Equipment Co., Ltd.
Net Sales
At CNY 1,402.06 MM has Grown at 51.86%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Operating Cash Flow
Highest at CNY 404.1 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Inventory Turnover Ratio
Highest at 1.79%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Lanzhou LS Heavy Equipment Co., Ltd.
Pre-Tax Profit
At CNY 11.2 MM has Fallen at -65.68%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 14.55 MM has Fallen at -56.08%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 46.57
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 12.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 0.89 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 11.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 14.55 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Cash and Eqv
Lowest at CNY 2,159.55 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 35.41% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at CNY 2.28 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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