Lingyi iTech (Guangdong) Co. (002600) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lingyi iTech (Guangdong) Co.

Why is Lingyi iTech (Guangdong) Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.19% and Operating profit at 12.97% over the last 5 years

Positive results in Mar 25

NET SALES(HY) At CNY 24,097.03 MM has Grown at 25.78%
NET PROFIT(HY) At CNY 1,176.48 MM has Grown at 68.89%
RAW MATERIAL COST(Y) Fallen by -1.54% (YoY)

With ROE of 10.41%, it has a expensive valuation with a 5.13 Price to Book Value

Over the past year, while the stock has generated a return of 66.36%, its profits have risen by 27.6% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 66.36% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lingyi iTech (Guangdong) Co. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Lingyi iTech (Guangdong) Co. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lingyi iTech (Guangdong) Co.

70.01%

3.72

54.88%

China Shanghai Composite

14.77%

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)

13.19%

EBIT Growth (5y)

12.97%

EBIT to Interest (avg)

7.68

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.33

Tax Ratio

17.96%

Dividend Payout Ratio

7.99%

Pledged Shares

Institutional Holding

ROCE (avg)

10.67%

ROE (avg)

11.35%

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

5.13

EV to EBIT

45.70

EV to EBITDA

22.41

EV to Capital Employed

4.05

EV to Sales

2.31

PEG Ratio

1.79

Dividend Yield

0.07%

ROCE (Latest)

8.87%

ROE (Latest)

10.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

11What is working for the Company

NET SALES(HY)

At CNY 24,097.03 MM has Grown at 25.78%

NET PROFIT(HY)

At CNY 1,176.48 MM has Grown at 68.89%

RAW MATERIAL COST(Y)

Fallen by -1.54% (YoY

CASH AND EQV(HY)

Highest at CNY 12,758.71 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.49%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.44%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,784.05 MM

INTEREST(Q)

At CNY 86.12 MM has Grown at 43.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 659.56

OPERATING PROFIT(Q)

Lowest at CNY 568.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.96 %

Here's what is working for Lingyi iTech (Guangdong) Co.

Net Sales

At CNY 24,097.03 MM has Grown at 25.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 1,176.48 MM has Grown at 68.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 12,758.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.49%

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 4.44%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.54% (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 Lingyi iTech (Guangdong) Co.

Operating Cash Flow

Lowest at CNY 3,784.05 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 86.12 MM has Grown at 43.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 659.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 86.12 MM

in the last five periods and Increased by 43.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 568.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales