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 4.79% and Operating profit at 24.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Operating Profit of 6.05%, the company declared Outstanding results in Sep 25

ROCE(HY) Highest at -1.57%
RAW MATERIAL COST(Y) Fallen by -54.81% (YoY)
CASH AND EQV(HY) Highest at CNY 36.44 MM

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 2.08%, its profits have risen by 19.5%

Underperformed the market in the last 1 year

The stock has generated a return of 2.08% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

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, Medium Return

Absolute

Risk Adjusted

Volatility

Letong Chemical Co. Ltd.

2.08%

0.46

46.82%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.79%

EBIT Growth (5y)

24.15%

EBIT to Interest (avg)

-0.25

Debt to EBITDA (avg)

13.81

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

1.20

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

13.84

EV to EBIT

-2714.86

EV to EBITDA

143.25

EV to Capital Employed

6.50

EV to Sales

6.89

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.05%

ROE (Latest)

-6.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

22What is working for the Company

ROCE(HY)

Highest at -1.57%

RAW MATERIAL COST(Y)

Fallen by -54.81% (YoY

CASH AND EQV(HY)

Highest at CNY 36.44 MM

DEBT-EQUITY RATIO (HY)

Lowest at 95.93 %

PRE-TAX PROFIT(Q)

Highest at CNY 2.49 MM

NET PROFIT(Q)

Highest at CNY 2.47 MM

EPS(Q)

Highest at CNY 0.01

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At CNY 2.49 MM has Grown at 238.07%

over average net sales of the previous four periods of CNY -1.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.47 MM has Grown at 194.53%

over average net sales of the previous four periods of CNY -2.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 2.49 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 2.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 36.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 95.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -54.81% (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