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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.34% and Operating profit at 2.93% over the last 5 years
The company is Net-Debt Free
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 1.34% and Operating profit at 2.93% over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 690.61 MM
NET PROFIT(HY) At CNY 221.21 MM has Grown at 72.4%
ROCE(HY) Highest at 14.51%

With ROE of 13.34%, it has a expensive valuation with a 1.28 Price to Book Value

Over the past year, while the stock has generated a return of -0.94%, its profits have risen by 183.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 3.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 20.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.94% returns

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.

1.11%

3.56

47.94%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.34%

EBIT Growth (5y)

2.93%

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

38.46%

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

1.28

EV to EBIT

10.57

EV to EBITDA

6.92

EV to Capital Employed

1.25

EV to Sales

1.25

PEG Ratio

0.05

Dividend Yield

3.17%

ROCE (Latest)

11.83%

ROE (Latest)

13.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 690.61 MM

NET PROFIT(HY)

At CNY 221.21 MM has Grown at 72.4%

ROCE(HY)

Highest at 14.51%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -18.19% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 13.55 %

NET SALES(Q)

Highest at CNY 1,327.6 MM

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 163.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.34 %

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

Operating Cash Flow

Highest at CNY 690.61 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 221.21 MM has Grown at 72.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,327.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,327.6 MM has Grown at 17.73%

over average net sales of the previous four periods of CNY 1,127.65 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 13.55 %

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 -18.19% (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.

Operating Profit

Lowest at CNY 163.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales