Lianhe Chemical Technology Co., Ltd. (002250) 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

Lianhe Chemical Technology Co., Ltd.

Why is Lianhe Chemical Technology Co., Ltd. ?

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 1,244.4 MM
RAW MATERIAL COST(Y) Fallen by -15.03% (YoY)
NET PROFIT(Q) At CNY 46.65 MM has Grown at 63.23%

With ROE of 5.62%, it has a attractive valuation with a 1.45 Price to Book Value

Over the past year, while the stock has generated a return of 108.03%, 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

Market Beating Performance

The stock has generated a return of 108.03% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

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.

97.52%

2.74

51.78%

China Shanghai Composite

15.19%

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)

7.79%

EBIT Growth (5y)

13.78%

EBIT to Interest (avg)

5.08

Debt to EBITDA (avg)

4.08

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.55

Tax Ratio

29.68%

Dividend Payout Ratio

17.67%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

4.71%

ROE (avg)

5.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.45

EV to EBIT

29.38

EV to EBITDA

10.17

EV to Capital Employed

1.29

EV to Sales

2.24

PEG Ratio

0.15

Dividend Yield

0.19%

ROCE (Latest)

4.40%

ROE (Latest)

5.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,244.4 MM

RAW MATERIAL COST(Y)

Fallen by -15.03% (YoY

NET PROFIT(Q)

At CNY 46.65 MM has Grown at 63.23%

-13What is not working for the Company

INTEREST(HY)

At CNY 66.56 MM has Grown at 59.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 311.34

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.82%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.11%

OPERATING PROFIT(Q)

Lowest at CNY 105.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.03 %

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

Operating Cash Flow

Highest at CNY 1,244.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 46.65 MM has Grown at 63.23%

over average net sales of the previous four periods of CNY 28.58 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.03% (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

At CNY 66.56 MM has Grown at 59.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 311.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 105.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.82%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.11%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio