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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

LianChuang Electronic Technology Co., Ltd.

Why is LianChuang Electronic Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.16%

Poor long term growth as Net Sales has grown by an annual rate of 9.91% and Operating profit at -195.78% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

INTEREST(HY) At CNY 158.21 MM has Grown at 15.73%
DEBT-EQUITY RATIO (HY) Highest at 336.38 %
INVENTORY TURNOVER RATIO(HY) Lowest at 4.82%

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 -10.12%, its profits have risen by 39.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.12% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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.

-2.55%

1.07

46.81%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.91%

EBIT Growth (5y)

-195.78%

EBIT to Interest (avg)

-0.08

Debt to EBITDA (avg)

12.98

Net Debt to Equity (avg)

3.35

Sales to Capital Employed (avg)

0.84

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

5.40

EV to EBIT

-59.26

EV to EBITDA

35.74

EV to Capital Employed

1.98

EV to Sales

2.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.34%

ROE (Latest)

-23.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -241.76% (YoY

PRE-TAX PROFIT(Q)

At CNY -3.95 MM has Grown at 97.58%

NET PROFIT(Q)

At CNY 3.26 MM has Grown at 102.36%

-14What is not working for the Company

INTEREST(HY)

At CNY 158.21 MM has Grown at 15.73%

DEBT-EQUITY RATIO (HY)

Highest at 336.38 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.82%

NET SALES(Q)

Lowest at CNY 2,170.92 MM

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

Pre-Tax Profit

At CNY -3.95 MM has Grown at 97.58%

over average net sales of the previous four periods of CNY -163.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.26 MM has Grown at 102.36%

over average net sales of the previous four periods of CNY -138.21 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -241.76% (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 158.21 MM has Grown at 15.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 2,170.92 MM has Fallen at -14.73%

over average net sales of the previous four periods of CNY 2,545.97 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 2,170.92 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 336.38 %

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 4.82%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio