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

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 -11.35% and Operating profit at -199.09% over the last 5 years

With a fall in Net Sales of -10.5%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY -142.19 MM has Grown at -5,929.58%
ROCE(HY) Lowest at -13.27%
DEBT-EQUITY RATIO (HY) Highest at 0.1 %

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 -17.16%, its profits have fallen by -440.4%

Below par performance in long term as well as near term

Along with generating -17.16% 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 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.

-17.16%

0.78

44.57%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.35%

EBIT Growth (5y)

-199.09%

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)

0.47

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

3.49

EV to EBIT

-49.47

EV to EBITDA

-103.90

EV to Capital Employed

3.76

EV to Sales

5.74

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.61%

ROE (Latest)

-2.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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 -6.91% (YoY

-24What is not working for the Company

NET PROFIT(HY)

At CNY -142.19 MM has Grown at -5,929.58%

ROCE(HY)

Lowest at -13.27%

DEBT-EQUITY RATIO (HY)

Highest at 0.1 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.1 times

NET SALES(Q)

Lowest at CNY 141.13 MM

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

Raw Material Cost

Fallen by -6.91% (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.

Net Profit

At CNY -142.19 MM has Grown at -5,929.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 141.13 MM has Fallen at -22.13%

over average net sales of the previous four periods of CNY 181.24 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 141.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 0.1 %

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

Inventory Turnover Ratio

Lowest at 4.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio