Lihuayi Weiyuan Chemical Co., Ltd. () 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

Lihuayi Weiyuan Chemical Co., Ltd.

Why is Lihuayi Weiyuan Chemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.81% and Operating profit at -150.15% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 38.38 MM has Grown at 734.41%
NET PROFIT(Q) At CNY -163.11 MM has Fallen at -1,256.09%
OPERATING CASH FLOW(Y) Lowest at CNY 546.23 MM

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 39.16%, its profits have fallen by -242.8%

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 Specialty Chemicals)

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

Is Lihuayi Weiyuan Chemical Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Lihuayi Weiyuan Chemical Co., Ltd.

-100.0%

0.57

37.08%

China Shanghai Composite

24.27%

1.76

14.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.81%

EBIT Growth (5y)

-150.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.72

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.73

Tax Ratio

19.74%

Dividend Payout Ratio

29.15%

Pledged Shares

Institutional Holding

ROCE (avg)

15.36%

ROE (avg)

6.78%

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

0.92

EV to EBIT

-46.71

EV to EBITDA

16.01

EV to Capital Employed

0.94

EV to Sales

1.06

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.01%

ROE (Latest)

-1.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

2What is working for the Company

NET SALES(9M)

At CNY 7,391.62 MM has Grown at 23.4%

-35What is not working for the Company

INTEREST(HY)

At CNY 38.38 MM has Grown at 734.41%

NET PROFIT(Q)

At CNY -163.11 MM has Fallen at -1,256.09%

OPERATING CASH FLOW(Y)

Lowest at CNY 546.23 MM

ROCE(HY)

Lowest at -1.47%

DEBT-EQUITY RATIO (HY)

Highest at 29.73 %

RAW MATERIAL COST(Y)

Grown by 1,225.49% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 107.64%

OPERATING PROFIT(Q)

Lowest at CNY -177.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.4 %

PRE-TAX PROFIT(Q)

Lowest at CNY -187.51 MM

EPS(Q)

Lowest at CNY -0.3

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

Net Sales

At CNY 7,391.62 MM has Grown at 23.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Lihuayi Weiyuan Chemical Co., Ltd.

Interest

At CNY 38.38 MM has Grown at 734.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -187.51 MM has Fallen at -1,389.76%

over average net sales of the previous four periods of CNY 14.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -163.11 MM has Fallen at -1,256.09%

over average net sales of the previous four periods of CNY 14.11 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 29.73 % 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 Cash Flow

Lowest at CNY 546.23 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -177.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -7.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -187.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -163.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.3

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 107.64%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 1,225.49% (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