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Lianhe Chemical Technology Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE100000C15
  • SHE: 002250
CNY
14.51
-0.23 (-1.56%)

Sep 24

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Lianhe Chemical Technology Co., Ltd.

Why is Lianhe Chemical Technology Co., Ltd. ?

1
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 4.48% and Operating profit at -1.05% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 5.35% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 4.48% and Operating profit at -1.05% over the last 5 years
3
Positive results in Mar 26
  • NET PROFIT(9M) At CNY 233.47 MM has Grown at 66.76%
  • ROCE(HY) Highest at 6.25%
  • RAW MATERIAL COST(Y) Fallen by -29.37% (YoY)
4
With ROE of 7.10%, it has a fair valuation with a 1.82 Price to Book Value
  • Over the past year, while the stock has generated a return of 43.18%, its profits have risen by 143.7% ; the PEG ratio of the company is 0.2
  • At the current price, the company has a high dividend yield of 0.1
5
Market Beating Performance
  • The stock has generated a return of 43.18% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Lianhe Chemical Technology Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lianhe Chemical Technology Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Lianhe Chemical Technology Co., Ltd.
38.45%
4.00
47.97%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
4.48%
EBIT Growth (5y)
-1.05%
EBIT to Interest (avg)
3.98
Debt to EBITDA (avg)
4.21
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.54
Tax Ratio
12.04%
Dividend Payout Ratio
50.30%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
4.19%
ROE (avg)
5.35%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.75
EV to EBIT
24.71
EV to EBITDA
12.25
EV to Capital Employed
1.48
EV to Sales
2.31
PEG Ratio
0.17
Dividend Yield
0.15%
ROCE (Latest)
5.97%
ROE (Latest)
7.10%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

33What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 1,391.74 MM

ROCE(HY)

Highest at 7.5%

DEBT-EQUITY RATIO (HY)

Lowest at 43.54 %

INTEREST COVERAGE RATIO(Q)

Highest at 2,506.54

DIVIDEND PAYOUT RATIO(Y)

Highest at 33.8%

RAW MATERIAL COST(Y)

Fallen by -29.27% (YoY

CASH AND EQV(HY)

Highest at CNY 2,124.58 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16 times

DIVIDEND PER SHARE(HY)

Highest at CNY 3.14

NET SALES(Q)

Highest at CNY 2,032.4 MM

OPERATING PROFIT(Q)

Highest at CNY 625.21 MM

OPERATING PROFIT MARGIN(Q)

Highest at 30.76 %

PRE-TAX PROFIT(Q)

Highest at CNY 348.31 MM

NET PROFIT(Q)

Highest at CNY 263.1 MM

EPS(Q)

Highest at CNY 0.3

0What is not working for the Company
Icon
NO KEY NEGATIVE TRIGGERS

Here's what is working for Lianhe Chemical Technology Co., Ltd.

Interest Coverage Ratio
Highest at 2,506.54
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit
At CNY 348.31 MM has Grown at 153.47%
over average net sales of the previous four periods of CNY 137.42 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 263.1 MM has Grown at 160.19%
over average net sales of the previous four periods of CNY 101.12 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio
Lowest at 43.54 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow
Highest at CNY 1,391.74 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales
Highest at CNY 2,032.4 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Sales
At CNY 2,032.4 MM has Grown at 18.11%
over average net sales of the previous four periods of CNY 1,720.73 MM
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit
Highest at CNY 625.21 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin
Highest at 30.76 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at CNY 348.31 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 263.1 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY 0.3
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 2,124.58 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 2.16 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share
Highest at CNY 3.14
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio
Highest at 33.8%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by -29.27% (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

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