Leshan Giantstar Farming & Husbandry Co., Ltd. (603477) 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

Leshan Giantstar Farming & Husbandry Co., Ltd.

Why is Leshan Giantstar Farming & Husbandry 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 52.25% and Operating profit at 27.71% 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 8.79% signifying low profitability per unit of shareholders funds

Underperformed the market in the last 1 year

The stock has generated a return of 3.33% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Other Agricultural Products)

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

Is Leshan Giantstar Farming & Husbandry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Leshan Giantstar Farming & Husbandry Co., Ltd.

-20.26%

-1.44

33.95%

China Shanghai Composite

15.45%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

52.25%

EBIT Growth (5y)

27.71%

EBIT to Interest (avg)

3.96

Debt to EBITDA (avg)

7.64

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.82

Tax Ratio

0.20%

Dividend Payout Ratio

17.04%

Pledged Shares

Institutional Holding

ROCE (avg)

7.67%

ROE (avg)

8.79%

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

3.18

EV to EBIT

14.57

EV to EBITDA

9.32

EV to Capital Employed

2.14

EV to Sales

1.80

PEG Ratio

0.04

Dividend Yield

0.83%

ROCE (Latest)

14.67%

ROE (Latest)

22.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,650.48 MM

NET SALES(HY)

At CNY 3,993.82 MM has Grown at 32.95%

DEBTORS TURNOVER RATIO(HY)

Highest at 78.32 times

INVENTORY TURNOVER RATIO(HY)

Highest at 2.75 times

-25What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -36.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.9 %

PRE-TAX PROFIT(Q)

Lowest at CNY -65.33 MM

NET PROFIT(Q)

Lowest at CNY -73.53 MM

RAW MATERIAL COST(Y)

Grown by 87.42% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 125.9 %

EPS(Q)

Lowest at CNY -0.15

Here's what is working for Leshan Giantstar Farming & Husbandry Co., Ltd.

Operating Cash Flow

Highest at CNY 1,650.48 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)

Net Sales

At CNY 3,993.82 MM has Grown at 32.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 78.32 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

Inventory Turnover Ratio

Highest at 2.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Leshan Giantstar Farming & Husbandry Co., Ltd.

Pre-Tax Profit

At CNY -65.33 MM has Fallen at -134.77%

over average net sales of the previous four periods of CNY 187.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -73.53 MM has Fallen at -139.54%

over average net sales of the previous four periods of CNY 185.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -36.59 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.9 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -65.33 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -73.53 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 125.9 %

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

Raw Material Cost

Grown by 87.42% (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