Lifan Technology (Group) Co., Ltd. (601777) 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

Lifan Technology (Group) Co., Ltd.

Why is Lifan Technology (Group) Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 21.95% and Operating profit at 12.49% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.95% and Operating profit at 12.49% over the last 5 years

With a growth in Operating Profit of 223.36%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 7 consecutive quarters
NET SALES(HY) At CNY 5,119.57 MM has Grown at 22.36%
ROCE(HY) Highest at 1.26%
INVENTORY TURNOVER RATIO(HY) Highest at 4.75 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -36.90%, its profits have fallen by -19.4%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -36.90% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lifan Technology (Group) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lifan Technology (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lifan Technology (Group) Co., Ltd.

-37.08%

4.11

42.13%

China Shanghai Composite

0.9%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.95%

EBIT Growth (5y)

12.49%

EBIT to Interest (avg)

-6.63

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.54

Tax Ratio

24.28%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

5.15%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.64

EV to EBIT

-36.12

EV to EBITDA

-84.23

EV to Capital Employed

3.52

EV to Sales

3.62

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.74%

ROE (Latest)

-2.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

23What is working for the Company

NET SALES(HY)

At CNY 5,119.57 MM has Grown at 22.36%

ROCE(HY)

Highest at 1.26%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.75 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.58 times

RAW MATERIAL COST(Y)

Fallen by -349.53% (YoY

OPERATING PROFIT(Q)

Highest at CNY 218.92 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.94 %

NET PROFIT(Q)

Highest at CNY 103.66 MM

-3What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -109.14 MM has Fallen at -48.11%

DEBT-EQUITY RATIO (HY)

Highest at 16.6 %

Here's what is working for Lifan Technology (Group) Co., Ltd.

Net Profit

At CNY 103.66 MM has Grown at 200.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 5,119.57 MM has Grown at 22.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.75 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.58 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit

Highest at CNY 218.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 7.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at CNY 103.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -349.53% (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 Lifan Technology (Group) Co., Ltd.

Pre-Tax Profit

At CNY -109.14 MM has Fallen at -48.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 16.6 %

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

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