Lao Feng Xiang Co., Ltd. (600612) 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

Lao Feng Xiang Co., Ltd.

Why is Lao Feng Xiang Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at -1.89% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -1,207.02 MM
NET SALES(9M) At CNY 48,001.46 MM has Grown at -8.71%
ROCE(HY) Lowest at 12.79%

With ROE of 17.57%, it has a very attractive valuation with a 1.66 Price to Book Value

Over the past year, while the stock has generated a return of -13.35%, its profits have fallen by -27.5%
At the current price, the company has a high dividend yield of 3.1

Below par performance in long term as well as near term

Along with generating -13.35% 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 Lao Feng Xiang Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

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

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

Is Lao Feng Xiang Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lao Feng Xiang Co., Ltd.

-20.53%

-1.35

29.62%

China Shanghai Composite

24.7%

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)

0.32%

EBIT Growth (5y)

-1.89%

EBIT to Interest (avg)

11.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

3.17

Tax Ratio

25.58%

Dividend Payout Ratio

46.15%

Pledged Shares

Institutional Holding

ROCE (avg)

52.33%

ROE (avg)

23.63%

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

1.66

EV to EBIT

5.40

EV to EBITDA

4.87

EV to Capital Employed

2.60

EV to Sales

0.28

PEG Ratio

Dividend Yield

3.06%

ROCE (Latest)

48.25%

ROE (Latest)

17.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -21.41% (YoY

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -1,207.02 MM

NET SALES(9M)

At CNY 48,001.46 MM has Grown at -8.71%

ROCE(HY)

Lowest at 12.79%

NET PROFIT(Q)

At CNY 212.09 MM has Fallen at -42.18%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.82 %

PRE-TAX PROFIT(Q)

Fallen at -36.75%

Here's what is working for Lao Feng Xiang Co., Ltd.

Raw Material Cost

Fallen by -21.41% (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 Lao Feng Xiang Co., Ltd.

Net Profit

At CNY 212.09 MM has Fallen at -42.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 48,001.46 MM has Grown at -8.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -1,207.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at 2.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -36.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)