Lingyun Industrial Corp. Ltd. (600480) 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

Lingyun Industrial Corp. Ltd.

Why is Lingyun Industrial Corp. Ltd. ?

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,695.72 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,330.05
DEBTORS TURNOVER RATIO(HY) Lowest at 2.82 times

With ROE of 12.74%, it has a very attractive valuation with a 2.21 Price to Book Value

Over the past year, while the stock has generated a return of -4.42%, its profits have risen by 2.9%
At the current price, the company has a high dividend yield of 2.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.42% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lingyun Industrial Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Lingyun Industrial Corp. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lingyun Industrial Corp. Ltd.

-37.93%

0.07

51.04%

China Shanghai Composite

16.1%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.13%

EBIT Growth (5y)

15.38%

EBIT to Interest (avg)

7.05

Debt to EBITDA (avg)

0.64

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.72

Tax Ratio

12.09%

Dividend Payout Ratio

43.05%

Pledged Shares

Institutional Holding

ROCE (avg)

10.65%

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

2.21

EV to EBIT

17.72

EV to EBITDA

8.09

EV to Capital Employed

2.19

EV to Sales

0.90

PEG Ratio

Dividend Yield

2.59%

ROCE (Latest)

12.36%

ROE (Latest)

12.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.89 times

NET PROFIT(Q)

At CNY 155.4 MM has Grown at 52.98%

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,695.72 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,330.05

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.82 times

OPERATING PROFIT(Q)

Lowest at CNY 196.56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.09 %

Here's what is working for Lingyun Industrial Corp. Ltd.

Net Profit

At CNY 155.4 MM has Grown at 52.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.99% (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 Lingyun Industrial Corp. Ltd.

Interest Coverage Ratio

Lowest at 1,330.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 1,695.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 196.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio