Liaoning Fu-An Heavy Industry Co., Ltd. (603315) 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

Liaoning Fu-An Heavy Industry Co., Ltd.

Why is Liaoning Fu-An Heavy Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.26%

The company has been able to generate a Return on Capital Employed (avg) of 4.26% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.63% and Operating profit at -170.98% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.63% and Operating profit at -170.98% over the last 5 years

With a fall in Net Sales of -19.95%, the company declared Very Negative results in Sep 25

PRE-TAX PROFIT(Q) At CNY -14.86 MM has Fallen at -178.21%
INTEREST(HY) At CNY 19.3 MM has Grown at 5.3%
ROCE(HY) Lowest at 2.86%

With ROE of 4.63%, it has a very expensive valuation with a 2.43 Price to Book Value

Over the past year, while the stock has generated a return of 34.46%, its profits have fallen by -17.6%
At the current price, the company has a high dividend yield of 0.6

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 Ferrous Metals)

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

Is Liaoning Fu-An Heavy Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Liaoning Fu-An Heavy Industry Co., Ltd.

6.66%

1.19

50.98%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.63%

EBIT Growth (5y)

-170.98%

EBIT to Interest (avg)

3.21

Debt to EBITDA (avg)

5.06

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.47

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

29.26%

Pledged Shares

Institutional Holding

ROCE (avg)

4.26%

ROE (avg)

5.01%

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

2.43

EV to EBIT

-1413.15

EV to EBITDA

85.49

EV to Capital Employed

1.96

EV to Sales

4.06

PEG Ratio

Dividend Yield

0.60%

ROCE (Latest)

-0.14%

ROE (Latest)

4.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 237.83 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.82 times

-26What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -14.86 MM has Fallen at -178.21%

INTEREST(HY)

At CNY 19.3 MM has Grown at 5.3%

ROCE(HY)

Lowest at 2.86%

NET SALES(Q)

At CNY 300.17 MM has Fallen at -19.95%

RAW MATERIAL COST(Y)

Grown by 70.92% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 49.32 %

NET PROFIT(Q)

Lowest at CNY -12.54 MM

EPS(Q)

Lowest at CNY -0.04

Here's what is working for Liaoning Fu-An Heavy Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 237.83 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Liaoning Fu-An Heavy Industry Co., Ltd.

Pre-Tax Profit

At CNY -14.86 MM has Fallen at -178.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.54 MM has Fallen at -158.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 300.17 MM has Fallen at -19.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 19.3 MM has Grown at 5.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Lowest at CNY -12.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 49.32 %

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

Raw Material Cost

Grown by 70.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales