Liqun Commercial Group Co., Ltd. (601366) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Liqun Commercial Group Co., Ltd.

Why is Liqun Commercial Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.05%

Poor long term growth as Net Sales has grown by an annual rate of -6.79% and Operating profit at -1.00% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET PROFIT(Q) At CNY 5.1 MM has Fallen at -58.24%
OPERATING CASH FLOW(Y) Lowest at CNY 733.13 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.32%

Below par performance in long term as well as near term

Along with generating -15.64% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Retailing)

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

Is Liqun Commercial Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Liqun Commercial Group Co., Ltd.

-15.64%

-0.20

23.18%

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)

-6.79%

EBIT Growth (5y)

-1.00%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

1.31

Sales to Capital Employed (avg)

0.71

Tax Ratio

87.22%

Dividend Payout Ratio

64.31%

Pledged Shares

Institutional Holding

ROCE (avg)

3.05%

ROE (avg)

1.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

1572

Industry P/E

Price to Book Value

0.91

EV to EBIT

28.17

EV to EBITDA

8.64

EV to Capital Employed

0.96

EV to Sales

1.31

PEG Ratio

Dividend Yield

0.44%

ROCE (Latest)

3.41%

ROE (Latest)

0.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -31.73% (YoY

CASH AND EQV(HY)

Highest at CNY 1,830.94 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 16.49%

-20What is not working for the Company

NET PROFIT(Q)

At CNY 5.1 MM has Fallen at -58.24%

OPERATING CASH FLOW(Y)

Lowest at CNY 733.13 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 116.82

OPERATING PROFIT(Q)

Lowest at CNY 88.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.15 %

PRE-TAX PROFIT(Q)

Fallen at -37.23%

Here's what is working for Liqun Commercial Group Co., Ltd.

Cash and Eqv

Highest at CNY 1,830.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 16.49%

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 -31.73% (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 Liqun Commercial Group Co., Ltd.

Net Profit

At CNY 5.1 MM has Fallen at -58.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 116.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 2.32% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 733.13 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 88.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -37.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)