ScoreWhy is Liaoning Fu-An Heavy Industry Co., Ltd. ?
1
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)
2
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
3
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
4
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%
5
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 ReportHow 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.
34.58%
1.19
50.98%
China Shanghai Composite
17.19%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.92%
EBIT Growth (5y)
-22.06%
EBIT to Interest (avg)
3.21
Debt to EBITDA (avg)
5.06
Net Debt to Equity (avg)
0.46
Sales to Capital Employed (avg)
0.46
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
30.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.26%
ROE (avg)
5.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
120
Industry P/E
Price to Book Value
2.75
EV to EBIT
168.36
EV to EBITDA
69.92
EV to Capital Employed
2.21
EV to Sales
4.30
PEG Ratio
NA
Dividend Yield
0.53%
ROCE (Latest)
1.31%
ROE (Latest)
2.29%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 119.83 MM
NET SALES(HY)
At CNY 646.85 MM has Grown at 20.53%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -47.97% (YoY
CASH AND EQV(HY)
Highest at CNY 553.03 MM
-7What is not working for the Company
NET PROFIT(9M)
At CNY 13.68 MM has Grown at -73.92%
ROCE(HY)
Lowest at 2.4%
PRE-TAX PROFIT(Q)
Fallen at -31.58%
Here's what is working for Liaoning Fu-An Heavy Industry Co., Ltd.
Operating Cash Flow
Highest at CNY 119.83 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 Sales
At CNY 646.85 MM has Grown at 20.53%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 553.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -47.97% (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 Liaoning Fu-An Heavy Industry Co., Ltd.
Net Profit
At CNY 13.68 MM has Grown at -73.92%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
Fallen at -31.58%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
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