LianChuang Electronic Technology Co., Ltd. (002036) 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

LianChuang Electronic Technology Co., Ltd.

Why is LianChuang Electronic Technology Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 3.74% and Operating profit at -200.51% over the last 5 years
The company is Net-Debt Free

With a fall in Net Sales of -6.72%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY -1,159.15 MM has Grown at -130.27%
INTEREST(HY) At CNY 197.95 MM has Grown at 25.12%
ROCE(HY) Lowest at -70.56%

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 -1.06%, its profits have risen by 35.8%

Below par performance in long term as well as near term

Along with generating -1.06% 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 Electronics & Appliances)

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

Is LianChuang Electronic Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

LianChuang Electronic Technology Co., Ltd.

-1.06%

1.27

41.59%

China Shanghai Composite

21.68%

1.63

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.74%

EBIT Growth (5y)

-200.51%

EBIT to Interest (avg)

-0.08

Debt to EBITDA (avg)

12.98

Net Debt to Equity (avg)

3.35

Sales to Capital Employed (avg)

0.81

Tax Ratio

5.31%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.16%

ROE (avg)

1.20%

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

4.94

EV to EBIT

-52.85

EV to EBITDA

67.69

EV to Capital Employed

1.77

EV to Sales

2.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.35%

ROE (Latest)

-23.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.54% (YoY

PRE-TAX PROFIT(Q)

At CNY -113.65 MM has Grown at 59.64%

NET PROFIT(Q)

At CNY -96.77 MM has Grown at 61.73%

-35What is not working for the Company

NET PROFIT(HY)

At CNY -1,159.15 MM has Grown at -130.27%

INTEREST(HY)

At CNY 197.95 MM has Grown at 25.12%

ROCE(HY)

Lowest at -70.56%

DEBT-EQUITY RATIO (HY)

Highest at 888.62 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07 times

CASH AND EQV(HY)

Lowest at CNY 2,972.27 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.91 times

NET SALES(Q)

Lowest at CNY 1,651.27 MM

Here's what is working for LianChuang Electronic Technology Co., Ltd.

Pre-Tax Profit

At CNY -113.65 MM has Grown at 59.64%

over average net sales of the previous four periods of CNY -281.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -96.77 MM has Grown at 61.73%

over average net sales of the previous four periods of CNY -252.83 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -12.54% (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 LianChuang Electronic Technology Co., Ltd.

Interest

At CNY 197.95 MM has Grown at 25.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,651.27 MM has Fallen at -20.02%

over average net sales of the previous four periods of CNY 2,064.71 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 888.62 % and Grown

In each half year 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

Inventory Turnover Ratio

Lowest at 3.07 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 1,651.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 2,972.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio