Linhai Co., Ltd. (600099) 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

Linhai Co., Ltd.

Why is Linhai Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.26%

The company has been able to generate a Return on Capital Employed (avg) of 1.26% signifying low profitability per unit of total capital (equity and debt)

With ROE of 4.00%, it has a expensive valuation with a 4.32 Price to Book Value

Over the past year, while the stock has generated a return of 16.95%, its profits have risen by 77.4% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0.3

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 Automobiles)

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

Is Linhai Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Linhai Co., Ltd.

-21.93%

1.91

27.78%

China Shanghai Composite

19.22%

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)

12.27%

EBIT Growth (5y)

31.52%

EBIT to Interest (avg)

4.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.44

Tax Ratio

11.05%

Dividend Payout Ratio

40.18%

Pledged Shares

Institutional Holding

ROCE (avg)

1.26%

ROE (avg)

2.49%

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

3.72

EV to EBIT

90.89

EV to EBITDA

62.78

EV to Capital Employed

3.52

EV to Sales

1.77

PEG Ratio

3.03

Dividend Yield

0.32%

ROCE (Latest)

3.87%

ROE (Latest)

4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

5What is working for the Company

NET PROFIT(HY)

At CNY 14.19 MM has Grown at 46.72%

ROCE(HY)

Highest at 4.66%

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.45% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 8.12 %

PRE-TAX PROFIT(Q)

At CNY 4.87 MM has Fallen at -29.4%

NET PROFIT(Q)

At CNY 4.16 MM has Fallen at -32.24%

Here's what is not working for Linhai Co., Ltd.

Pre-Tax Profit

At CNY 4.87 MM has Fallen at -29.4%

over average net sales of the previous four periods of CNY 6.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.16 MM has Fallen at -32.24%

over average net sales of the previous four periods of CNY 6.14 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 8.12 %

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

Raw Material Cost

Grown by 16.45% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales