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

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 12.44% and Operating profit at -0.22% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 210.61 MM has Grown at 44.06%
NET PROFIT(HY) At CNY 822.23 MM has Grown at -30.11%
INTEREST COVERAGE RATIO(Q) Lowest at 623.1

With ROE of 8.61%, it has a very expensive valuation with a 4.05 Price to Book Value

Over the past year, while the stock has generated a return of 109.24%, its profits have fallen by -0.9%
At the current price, the company has a high dividend yield of 0.1

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 Industrial Manufacturing)

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

Is Lingyi iTech (Guangdong) Co. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lingyi iTech (Guangdong) Co.

109.61%

4.97

54.64%

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)

12.44%

EBIT Growth (5y)

-0.22%

EBIT to Interest (avg)

7.68

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.35

Tax Ratio

17.96%

Dividend Payout Ratio

12.12%

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

4.05

EV to EBIT

38.86

EV to EBITDA

22.47

EV to Capital Employed

3.18

EV to Sales

2.07

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

8.18%

ROE (Latest)

8.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,511 MM

RAW MATERIAL COST(Y)

Fallen by -19.81% (YoY

CASH AND EQV(HY)

Highest at CNY 14,194.75 MM

-16What is not working for the Company

INTEREST(HY)

At CNY 210.61 MM has Grown at 44.06%

NET PROFIT(HY)

At CNY 822.23 MM has Grown at -30.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 623.1

DEBT-EQUITY RATIO (HY)

Highest at 44.85 %

OPERATING PROFIT(Q)

Lowest at CNY 602.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.76 %

PRE-TAX PROFIT(Q)

At CNY 449.25 MM has Fallen at -30.37%

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

Operating Cash Flow

Highest at CNY 4,511 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 14,194.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -19.81% (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.

Interest

At CNY 210.61 MM has Grown at 44.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 623.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 822.23 MM has Grown at -30.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 602.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 449.25 MM has Fallen at -30.37%

over average net sales of the previous four periods of CNY 645.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 44.85 %

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