Limin Group Co., Ltd. (002734) 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

Limin Group Co., Ltd.

Why is Limin Group Co., Ltd. ?

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 0.24% and Operating profit at -1.28% 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 7.68% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.24% and Operating profit at -1.28% over the last 5 years

With a growth in Net Sales of 4.01%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 671.32 MM
ROCE(HY) Highest at 13.37%
RAW MATERIAL COST(Y) Fallen by -66.31% (YoY)

With ROE of 9.33%, it has a very expensive valuation with a 2.26 Price to Book Value

Over the past year, while the stock has generated a return of 68.95%, its profits have risen by 733.7% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 1.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Limin Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Limin Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Limin Group Co., Ltd.

58.73%

2.65

57.87%

China Shanghai Composite

15.45%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.24%

EBIT Growth (5y)

-1.28%

EBIT to Interest (avg)

3.84

Debt to EBITDA (avg)

3.32

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.78

Tax Ratio

16.42%

Dividend Payout Ratio

173.91%

Pledged Shares

Institutional Holding

ROCE (avg)

6.11%

ROE (avg)

7.68%

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

2.26

EV to EBIT

27.76

EV to EBITDA

13.44

EV to Capital Employed

1.86

EV to Sales

2.15

PEG Ratio

0.03

Dividend Yield

1.92%

ROCE (Latest)

6.68%

ROE (Latest)

9.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 671.32 MM

ROCE(HY)

Highest at 13.37%

RAW MATERIAL COST(Y)

Fallen by -66.31% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 32.41 %

PRE-TAX PROFIT(Q)

At CNY 122.62 MM has Grown at 58.59%

NET PROFIT(Q)

At CNY 126.48 MM has Grown at 68.55%

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.02 times

Here's what is working for Limin Group Co., Ltd.

Operating Cash Flow

Highest at CNY 671.32 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 122.62 MM has Grown at 58.59%

over average net sales of the previous four periods of CNY 77.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 126.48 MM has Grown at 68.55%

over average net sales of the previous four periods of CNY 75.04 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 32.41 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -66.31% (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 Limin Group Co., Ltd.

Debtors Turnover Ratio

Lowest at 4.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio