Lingyuan Iron & Steel Co., Ltd. (600231) 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

Lingyuan Iron & Steel Co., Ltd.

Why is Lingyuan Iron & Steel 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 -5.00% and Operating profit at -234.60% 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 3.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.00% and Operating profit at -234.60% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(9M) At CNY -1,400.21 MM has Grown at -55.58%
NET SALES(Q) At CNY 3,861.52 MM has Fallen at -14.23%
CASH AND EQV(HY) Lowest at CNY 2,763.05 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 2.88%, its profits have fallen by -56.8%

Underperformed the market in the last 1 year

The stock has generated a return of 2.88% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Minerals & Mining)

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

Is Lingyuan Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lingyuan Iron & Steel Co., Ltd.

2.88%

1.27

39.94%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.00%

EBIT Growth (5y)

-234.60%

EBIT to Interest (avg)

-5.49

Debt to EBITDA (avg)

0.97

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

1.50

Tax Ratio

19.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.03%

ROE (avg)

3.55%

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

1.15

EV to EBIT

-6.20

EV to EBITDA

-9.17

EV to Capital Employed

1.08

EV to Sales

0.70

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.36%

ROE (Latest)

-34.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

NET PROFIT(HY)

Higher at CNY -567.76 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 49.23%

RAW MATERIAL COST(Y)

Fallen by -31.26% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -247.4 MM

-27What is not working for the Company

NET PROFIT(9M)

At CNY -1,400.21 MM has Grown at -55.58%

NET SALES(Q)

At CNY 3,861.52 MM has Fallen at -14.23%

CASH AND EQV(HY)

Lowest at CNY 2,763.05 MM

DEBT-EQUITY RATIO (HY)

Highest at 97.11 %

INTEREST(Q)

Highest at CNY 25.26 MM

Here's what is working for Lingyuan Iron & Steel Co., Ltd.

Net Profit

Higher at CNY -567.76 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 49.23% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY -247.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -31.26% (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 Lingyuan Iron & Steel Co., Ltd.

Net Sales

At CNY 3,861.52 MM has Fallen at -14.23%

over average net sales of the previous four periods of CNY 4,502.18 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 25.26 MM has Grown at 38.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 25.26 MM

in the last five periods and Increased by 38.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 2,763.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 97.11 %

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