Litu Holdings Ltd. (1008) 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

Litu Holdings Ltd.

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Aceso Life Science Group Ltd.

Jia Yao Holdings Ltd.

Southeast Asia Properties & Finance Ltd.

Why is Litu Holdings Ltd. ?

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
The company is Net-Debt Free

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 311.91 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,677.69
NET SALES(Q) Lowest at HKD 248.59 MM

With ROE of 2.92%, it has a Very Attractive valuation with a 0.13 Price to Book Value

Over the past year, while the stock has generated a return of -35.41%, its profits have risen by 392.9% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 5434.8

Below par performance in long term as well as near term

Along with generating -35.41% 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 Report

Verdict Report

How 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.

-35.41%

0.75

49.36%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

0.34

Tax Ratio

18.08%

Dividend Payout Ratio

2,888.89%

Pledged Shares

Institutional Holding

ROCE (avg)

2.57%

ROE (avg)

3.08%

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

0.13

EV to EBIT

3.61

EV to EBITDA

1.82

EV to Capital Employed

0.13

EV to Sales

0.38

PEG Ratio

0.01

Dividend Yield

5434.78%

ROCE (Latest)

3.54%

ROE (Latest)

2.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Bearish

OBV

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.96% (YoY

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 311.91 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,677.69

NET SALES(Q)

Lowest at HKD 248.59 MM

OPERATING PROFIT(Q)

Lowest at HKD 37.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.12 %

PRE-TAX PROFIT(Q)

Lowest at HKD -38.57 MM

NET PROFIT(Q)

Lowest at HKD -31.32 MM

Here's what is working for Litu Holdings Ltd.

Raw Material Cost

Fallen by -4.96% (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 46.81 MM has Grown at 15.35%

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 311.91 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Interest Coverage Ratio

Lowest at 1,677.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At HKD -38.57 MM has Fallen at -166.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -31.32 MM has Fallen at -160.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Net Sales

Lowest at HKD 248.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -38.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 37.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 15.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -38.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -31.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)