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LB Group Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE1000015M3
  • SHE: 002601
CNY
15.00
-0.24 (-1.57%)

Sep 24

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
LB Group Co., Ltd.

Why is LB Group Co., Ltd. ?

1
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -15.91% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 15.13% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -15.91% over the last 5 years
3
The company has declared Negative results for the last 7 consecutive quarters
  • ROCE(HY) Lowest at 3.2%
  • INTEREST COVERAGE RATIO(Q) Lowest at 380.83
  • OPERATING PROFIT(Q) Lowest at CNY 419.21 MM
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 1.88% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is LB Group Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
LB Group Co., Ltd.
-21.26%
-0.54
37.95%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
11.66%
EBIT Growth (5y)
-15.91%
EBIT to Interest (avg)
8.22
Debt to EBITDA (avg)
3.28
Net Debt to Equity (avg)
0.99
Sales to Capital Employed (avg)
0.51
Tax Ratio
28.33%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.54%
ROE (avg)
15.13%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
1.81
EV to EBIT
40.83
EV to EBITDA
15.40
EV to Capital Employed
1.43
EV to Sales
2.37
PEG Ratio
NA
Dividend Yield
0.58%
ROCE (Latest)
3.50%
ROE (Latest)
3.35%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 4,253.53 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,414.35

NET PROFIT(Q)

At CNY 649.84 MM has Grown at 219.5%

RAW MATERIAL COST(Y)

Fallen by -3.87% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.91 times

NET SALES(Q)

Highest at CNY 7,264.12 MM

OPERATING PROFIT(Q)

Highest at CNY 1,858.95 MM

PRE-TAX PROFIT(Q)

Highest at CNY 857.04 MM

-11What is not working for the Company
NET PROFIT(HY)

At CNY 838.51 MM has Grown at -39.15%

ROCE(HY)

Lowest at 3.05%

INTEREST(Q)

At CNY 131.43 MM has Grown at 19.4%

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

Operating Cash Flow
Highest at CNY 4,253.53 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)

Interest Coverage Ratio
Highest at 1,414.35
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit
At CNY 857.04 MM has Grown at 198.17%
over average net sales of the previous four periods of CNY 287.44 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 649.84 MM has Grown at 219.5%
over average net sales of the previous four periods of CNY 203.39 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales
Highest at CNY 7,264.12 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit
Highest at CNY 1,858.95 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit
Highest at CNY 857.04 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio
Highest at 2.91 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost
Fallen by -3.87% (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 LB Group Co., Ltd.

Interest
At CNY 131.43 MM has Grown at 19.4%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

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