ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Litu Holdings Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -13.72% and Operating profit at -18.86% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- OPERATING CASH FLOW(Y) Lowest at HKD 408.72 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 2,531.83
- CASH AND EQV(HY) Lowest at HKD 163.61 MM
2
With ROE of 3.89%, it has a Very Attractive valuation with a 0.20 Price to Book Value
- Over the past year, while the stock has generated a return of -24.80%, its profits have risen by 8411%
- At the current price, the company has a high dividend yield of 7407.4
3
Below par performance in long term as well as near term
- Along with generating -24.80% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Litu Holdings Ltd. should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Litu Holdings Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Litu Holdings Ltd.
-100.0%
0.57
53.64%
Hang Seng Hong Kong
8.25%
0.41
19.93%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-13.72%
EBIT Growth (5y)
-18.86%
EBIT to Interest (avg)
7.06
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
0.36
Tax Ratio
18.08%
Dividend Payout Ratio
77.82%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.57%
ROE (avg)
3.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.20
EV to EBIT
-0.01
EV to EBITDA
EV to Capital Employed
-0.00
EV to Sales
-0.00
PEG Ratio
NA
Dividend Yield
7407.41%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
3.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bearish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -43.39% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 17.21 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.03 times
-13What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at HKD 408.72 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 2,531.83
CASH AND EQV(HY)
Lowest at HKD 163.61 MM
DEBT-EQUITY RATIO
(HY)
Highest at -0.72 %
NET SALES(Q)
Lowest at HKD 307.94 MM
INTEREST(Q)
Highest at HKD 2.61 MM
OPERATING PROFIT(Q)
Lowest at HKD 66.11 MM
NET PROFIT(Q)
Fallen at -64.29%
Here's what is working for Litu Holdings Ltd.
Inventory Turnover Ratio
Highest at 17.21 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.03 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -43.39% (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
Depreciation
At HKD 40.58 MM has Grown at 20.91%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (HKD MM)
Here's what is not working for Litu Holdings Ltd.
Operating Cash Flow
Lowest at HKD 408.72 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (HKD MM)
Interest Coverage Ratio
Lowest at 2,531.83
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at HKD 307.94 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (HKD MM)
Interest
Highest at HKD 2.61 MM
in the last five periods and Increased by 26.14% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Operating Profit
Lowest at HKD 66.11 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (HKD MM)
Net Profit
Fallen at -64.29%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
Cash and Eqv
Lowest at HKD 163.61 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -0.72 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at HKD 1.66 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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