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

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 -5.53% and Operating profit at -1.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET PROFIT(HY) At CNY 8.63 MM has Grown at -36.5%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.26 times
INTEREST COVERAGE RATIO(Q) Lowest at 111.06

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.24% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Liqun Commercial Group Co., Ltd.

-27.23%

-0.16

31.13%

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)

-5.36%

EBIT Growth (5y)

-55.10%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

1.31

Sales to Capital Employed (avg)

0.69

Tax Ratio

87.22%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.71

EV to EBIT

1066.64

EV to EBITDA

12.58

EV to Capital Employed

0.85

EV to Sales

1.17

PEG Ratio

Dividend Yield

0.53%

ROCE (Latest)

0.08%

ROE (Latest)

-7.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,362.16 MM

RAW MATERIAL COST(Y)

Fallen by -58.03% (YoY

CASH AND EQV(HY)

Highest at CNY 2,004.39 MM

DEBT-EQUITY RATIO (HY)

Lowest at 125.98 %

NET PROFIT(Q)

Highest at CNY 6.72 MM

EPS(Q)

Highest at CNY 0.01

-23What is not working for the Company

NET PROFIT(HY)

At CNY -328.95 MM has Grown at -5,138.8%

NET SALES(Q)

At CNY 1,670.76 MM has Fallen at -22.06%

ROCE(HY)

Lowest at -7.47%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.12 times

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

Operating Cash Flow

Highest at CNY 1,362.16 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 6.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,004.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 125.98 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -58.03% (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 Sales

At CNY 1,670.76 MM has Fallen at -22.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.12 times 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