ScoreWhy 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 4.58% and Operating profit at 57.91% over the last 5 years
- The company is Net-Debt Free
2
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 -14.70%, its profits have risen by 73.6%
3
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -14.70% returns
Real-Time Research ReportHow 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 Industrial Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Letong Chemical Co. Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Letong Chemical Co. Ltd.
-13.54%
0.42
48.09%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.58%
EBIT Growth (5y)
57.91%
EBIT to Interest (avg)
-0.07
Debt to EBITDA (avg)
13.17
Net Debt to Equity (avg)
1.05
Sales to Capital Employed (avg)
1.15
Tax Ratio
3.39%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.30%
ROE (avg)
1.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
11.56
EV to EBIT
234.07
EV to EBITDA
100.48
EV to Capital Employed
6.09
EV to Sales
5.32
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.60%
ROE (Latest)
-2.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 1.41 MM has Grown at 265.49%
NET PROFIT(Q)
At CNY 1.43 MM has Grown at 248.01%
ROCE(HY)
Highest at -0.22%
NET SALES(Q)
Highest at CNY 126.68 MM
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 8.44 MM
INTEREST(Q)
At CNY 2.54 MM has Grown at 10.69%
RAW MATERIAL COST(Y)
Grown by 6.54% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 7.25 times
Here's what is working for Letong Chemical Co. Ltd.
Pre-Tax Profit
At CNY 1.41 MM has Grown at 265.49%
over average net sales of the previous four periods of CNY 0.39 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 1.43 MM has Grown at 248.01%
over average net sales of the previous four periods of CNY -0.96 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 126.68 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 126.68 MM has Grown at 19.47%
over average net sales of the previous four periods of CNY 106.03 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Letong Chemical Co. Ltd.
Interest
At CNY 2.54 MM has Grown at 10.69%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 8.44 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Inventory Turnover Ratio
Lowest at 7.25 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 6.54% (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
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