Letong Chemical Co. Ltd. (002319) 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

Letong Chemical Co. Ltd.

Why is Letong Chemical Co. Ltd. ?

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

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 -19.70%, its profits have risen by 73.6%

Below par performance in long term as well as near term

Along with generating -19.70% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

Letong Chemical Co. Ltd.

-22.67%

0.18

47.11%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.58%

EBIT Growth (5y)

57.91%

EBIT to Interest (avg)

-0.25

Debt to EBITDA (avg)

13.81

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

1.15

Tax Ratio

0.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.83%

ROE (avg)

1.68%

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

12.49

EV to EBIT

251.32

EV to EBITDA

107.88

EV to Capital Employed

6.53

EV to Sales

5.72

PEG Ratio

Dividend Yield

ROCE (Latest)

2.60%

ROE (Latest)

-2.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -39.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.08 times

PRE-TAX PROFIT(Q)

Highest at CNY 5.44 MM

NET PROFIT(Q)

Highest at CNY 5.27 MM

EPS(Q)

Highest at CNY 0.03

-8What is not working for the Company

NET PROFIT(HY)

At CNY -4.29 MM has Grown at -84.49%

OPERATING CASH FLOW(Y)

Lowest at CNY 5.63 MM

Here's what is working for Letong Chemical Co. Ltd.

Pre-Tax Profit

At CNY 5.44 MM has Grown at 573.13%

over average net sales of the previous four periods of CNY -1.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.27 MM has Grown at 310.19%

over average net sales of the previous four periods of CNY -2.51 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 5.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 5.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 2.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -39.96% (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 Letong Chemical Co. Ltd.

Operating Cash Flow

Lowest at CNY 5.63 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)