Why is Letong Chemical Co. Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.83%
- Poor long term growth as Net Sales has grown by an annual rate of 4.10% and Operating profit at -169.77% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With a growth in Net Profit of 123.55%, the company declared Very Positive results in Mar 25
- DEBTORS TURNOVER RATIO(HY) Highest at 1.98%
- RAW MATERIAL COST(Y) Fallen by -29.63% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at 104.57 %
3
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 3.01%, its profits have risen by 19.5%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 3.01% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
How much should you hold?
- Overall Portfolio exposure to Letong Chemical Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Letong Chemical Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Letong Chemical Co. Ltd.
-100.0%
0.79
41.30%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.10%
EBIT Growth (5y)
-169.77%
EBIT to Interest (avg)
-0.25
Debt to EBITDA (avg)
13.81
Net Debt to Equity (avg)
1.05
Sales to Capital Employed (avg)
1.21
Tax Ratio
0.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.83%
ROE (avg)
1.68%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
13.12
EV to EBIT
-2584.50
EV to EBITDA
136.37
EV to Capital Employed
6.19
EV to Sales
6.56
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.05%
ROE (Latest)
-6.37%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
13What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 1.98%
RAW MATERIAL COST(Y)
Fallen by -29.63% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 104.57 %
PRE-TAX PROFIT(Q)
At CNY -0.7 MM has Grown at 86.83%
NET PROFIT(Q)
Highest at CNY -0.91 MM
EPS(Q)
Highest at CNY -0
-4What is not working for the Company
NET PROFIT(9M)
At CNY -8.41 MM has Grown at -95.3%
Here's what is working for Letong Chemical Co. Ltd.
Debtors Turnover Ratio
Highest at 1.98% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Pre-Tax Profit
At CNY -0.7 MM has Grown at 86.83%
over average net sales of the previous four periods of CNY -5.35 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY -0.91 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY -0.91 MM has Grown at 85.24%
over average net sales of the previous four periods of CNY -6.16 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY -0
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Lowest at 104.57 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -29.63% (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






