LB Group Co., Ltd. (002601) 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

LB Group Co., Ltd.

Why is LB Group Co., Ltd. ?

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 16.88% and Operating profit at -1.20% 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 15.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.88% and Operating profit at -1.20% over the last 5 years

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

NET PROFIT(HY) At CNY 386.83 MM has Grown at -81.14%
INTEREST(HY) At CNY 593.8 MM has Grown at 88.47%
ROCE(HY) Lowest at 7.94%

With ROE of 8.67%, it has a fair valuation with a 1.59 Price to Book Value

Over the past year, while the stock has generated a return of -3.93%, its profits have fallen by -44.6%
At the current price, the company has a high dividend yield of 5.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.93% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to LB Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is LB Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LB Group Co., Ltd.

-2.19%

-0.35

25.11%

China Shanghai Composite

14.77%

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)

16.88%

EBIT Growth (5y)

-1.20%

EBIT to Interest (avg)

10.30

Debt to EBITDA (avg)

2.62

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

0.51

Tax Ratio

23.76%

Dividend Payout Ratio

87.69%

Pledged Shares

Institutional Holding

ROCE (avg)

11.90%

ROE (avg)

15.13%

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

1.59

EV to EBIT

19.88

EV to EBITDA

9.62

EV to Capital Employed

1.29

EV to Sales

2.26

PEG Ratio

Dividend Yield

5.18%

ROCE (Latest)

6.49%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,637.67 MM

-24What is not working for the Company

NET PROFIT(HY)

At CNY 386.83 MM has Grown at -81.14%

INTEREST(HY)

At CNY 593.8 MM has Grown at 88.47%

ROCE(HY)

Lowest at 7.94%

OPERATING PROFIT MARGIN(Q)

Lowest at 12.78 %

RAW MATERIAL COST(Y)

Grown by 18.39% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 98.6 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.26%

OPERATING PROFIT(Q)

Lowest at CNY 891.1 MM

Here's what is working for LB Group Co., Ltd.

Operating Cash Flow

Highest at CNY 3,637.67 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for LB Group Co., Ltd.

Net Profit

At CNY 386.83 MM has Grown at -81.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 593.8 MM has Grown at 88.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 12.78 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 891.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 98.6 %

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

Debtors Turnover Ratio

Lowest at 4.26%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.39% (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 0.14 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income