Leon Technology Co., Ltd. (300603) 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

Leon Technology Co., Ltd.

Why is Leon Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -11.51% and Operating profit at -186.05% over the last 5 years

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -12.67 MM
PRE-TAX PROFIT(Q) At CNY -21.26 MM has Fallen at -312.47%
NET PROFIT(Q) At CNY -22.73 MM has Fallen at -454.98%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 3.40%, its profits have fallen by -53%

Underperformed the market in the last 1 year

The stock has generated a return of 3.40% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How 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 Commercial Services & Supplies)

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

Is Leon Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Leon Technology Co., Ltd.

-4.96%

0.96

58.30%

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)

-11.51%

EBIT Growth (5y)

-186.05%

EBIT to Interest (avg)

-4.68

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.44

Tax Ratio

37.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.09

EV to EBIT

-53.96

EV to EBITDA

-281.92

EV to Capital Employed

3.24

EV to Sales

4.97

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.00%

ROE (Latest)

-1.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

16What is working for the Company

NET SALES(HY)

At CNY 437.13 MM has Grown at 32%

NET PROFIT(HY)

At CNY -2.36 MM has Grown at 85.92%

ROCE(HY)

Highest at 1.91%

RAW MATERIAL COST(Y)

Fallen by 1.69% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.68%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.16%

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -12.67 MM

PRE-TAX PROFIT(Q)

At CNY -21.26 MM has Fallen at -312.47%

NET PROFIT(Q)

At CNY -22.73 MM has Fallen at -454.98%

DEBT-EQUITY RATIO (HY)

Highest at -6.84 %

NET SALES(Q)

At CNY 176.57 MM has Fallen at -9.81%

OPERATING PROFIT MARGIN(Q)

Lowest at -11.62 %

Here's what is working for Leon Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 6.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.69% (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 Leon Technology Co., Ltd.

Pre-Tax Profit

At CNY -21.26 MM has Fallen at -312.47%

over average net sales of the previous four periods of CNY 10.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -22.73 MM has Fallen at -454.98%

over average net sales of the previous four periods of CNY 6.4 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -12.67 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 176.57 MM has Fallen at -9.81%

over average net sales of the previous four periods of CNY 195.77 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -11.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -6.84 %

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