Why is Lianhe Chemical Technology Co., Ltd. ?
1
With a growth in Net Sales of 7.54%, the company declared Very Positive results in Sep 25
- OPERATING CASH FLOW(Y) Highest at CNY 1,233.05 MM
- NET PROFIT(HY) Higher at CNY 262.35 MM
- ROCE(HY) Highest at 5.93%
2
With ROE of 5.62%, it has a attractive valuation with a 1.46 Price to Book Value
- Over the past year, while the stock has generated a return of 115.84%, its profits have risen by 176.9% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0.2
3
Market Beating Performance
- The stock has generated a return of 115.84% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%
How much should you buy?
- Overall Portfolio exposure to Lianhe Chemical Technology Co., Ltd. should be less than 10%
- 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.
114.85%
3.22
57.39%
China Shanghai Composite
15.45%
1.02
14.86%
Quality key factors
Factor
Value
Sales Growth (5y)
6.47%
EBIT Growth (5y)
14.07%
EBIT to Interest (avg)
5.08
Debt to EBITDA (avg)
4.08
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.54
Tax Ratio
29.68%
Dividend Payout Ratio
17.67%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
4.71%
ROE (avg)
5.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
1.46
EV to EBIT
29.58
EV to EBITDA
10.24
EV to Capital Employed
1.30
EV to Sales
2.26
PEG Ratio
0.15
Dividend Yield
0.19%
ROCE (Latest)
4.40%
ROE (Latest)
5.62%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,233.05 MM
NET PROFIT(HY)
Higher at CNY 262.35 MM
ROCE(HY)
Highest at 5.93%
RAW MATERIAL COST(Y)
Fallen by -30.67% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 50.11 %
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 499.7
OPERATING PROFIT(Q)
Lowest at CNY 118.76 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 7.57 %
Here's what is working for Lianhe Chemical Technology Co., Ltd.
Net Profit
At CNY 262.35 MM has Grown at 955.76%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 1,233.05 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
Higher at CNY 262.35 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at 50.11 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -30.67% (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 Lianhe Chemical Technology Co., Ltd.
Interest Coverage Ratio
Lowest at 499.7
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 118.76 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 7.57 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






