Lier Chemical Co., Ltd. (002258) 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

Lier Chemical Co., Ltd.

Why is Lier Chemical Co., Ltd. ?

The company has declared positive results in Mar'2025 after 8 consecutive negative quarters

NET SALES(HY) At CNY 4,182.8 MM has Grown at 30.18%
RAW MATERIAL COST(Y) Fallen by -27.88% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 226.41 MM

With ROE of 6.33%, it has a very attractive valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of 49.49%, its profits have risen by 71.4% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 3.4

Market Beating Performance

The stock has generated a return of 49.49% 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 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 Chemicals & Petrochemicals)

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

Is Lier Chemical Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lier Chemical Co., Ltd.

-100.0%

1.45

33.79%

China Shanghai Composite

24.3%

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)

13.70%

EBIT Growth (5y)

1.58%

EBIT to Interest (avg)

16.73

Debt to EBITDA (avg)

1.70

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.66

Tax Ratio

13.99%

Dividend Payout Ratio

74.35%

Pledged Shares

Institutional Holding

ROCE (avg)

15.31%

ROE (avg)

17.02%

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

1.19

EV to EBIT

22.41

EV to EBITDA

8.66

EV to Capital Employed

1.12

EV to Sales

1.58

PEG Ratio

0.26

Dividend Yield

3.44%

ROCE (Latest)

5.02%

ROE (Latest)

6.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

21What is working for the Company

NET SALES(HY)

At CNY 4,182.8 MM has Grown at 30.18%

RAW MATERIAL COST(Y)

Fallen by -27.88% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 226.41 MM

NET PROFIT(Q)

Highest at CNY 152.9 MM

EPS(Q)

Highest at CNY 0.19

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 415.18 MM

DEBT-EQUITY RATIO (HY)

Highest at 50.51 %

INTEREST(Q)

At CNY 23.37 MM has Grown at 27.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 964.23

OPERATING PROFIT(Q)

Lowest at CNY 225.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.85 %

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

Pre-Tax Profit

At CNY 226.41 MM has Grown at 163.71%

over average net sales of the previous four periods of CNY 85.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 152.9 MM has Grown at 182.79%

over average net sales of the previous four periods of CNY 54.07 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 4,182.8 MM has Grown at 30.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 226.41 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 152.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -27.88% (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 Lier Chemical Co., Ltd.

Operating Cash Flow

Lowest at CNY 415.18 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 23.37 MM has Grown at 27.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 964.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 50.51 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 225.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales