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

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

NET PROFIT(HY) At CNY -37.25 MM has Grown at -223.26%
RAW MATERIAL COST(Y) Grown by 60.39% (YoY)
NET SALES(Q) At CNY 194.87 MM has Fallen at -8.65%

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 -3.77%, its profits have fallen by -53%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.01% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.77% returns

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.

-3.77%

1.46

46.92%

China Shanghai Composite

16.01%

1.07

14.99%

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)

0.45

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

3.75

EV to EBIT

-65.89

EV to EBITDA

-344.29

EV to Capital Employed

3.96

EV to Sales

6.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.00%

ROE (Latest)

-1.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 4.18 MM has Grown at 368.72%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.28 times

NET PROFIT(Q)

At CNY -0.31 MM has Grown at 92.7%

-11What is not working for the Company

NET PROFIT(HY)

At CNY -37.25 MM has Grown at -223.26%

RAW MATERIAL COST(Y)

Grown by 60.39% (YoY

NET SALES(Q)

At CNY 194.87 MM has Fallen at -8.65%

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

Pre-Tax Profit

At CNY 4.18 MM has Grown at 368.72%

over average net sales of the previous four periods of CNY -1.56 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.28 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

At CNY -0.31 MM has Grown at 92.7%

over average net sales of the previous four periods of CNY -4.29 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Leon Technology Co., Ltd.

Net Sales

At CNY 194.87 MM has Fallen at -8.65%

over average net sales of the previous four periods of CNY 213.31 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 60.39% (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