Liuzhou Chemical Industry Co., Ltd. (600423) 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

Liuzhou Chemical Industry Co., Ltd.

Why is Liuzhou Chemical Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 27.17%

The company has been able to generate a Return on Capital Employed (avg) of 27.17% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.88% and Operating profit at 14.78% over the last 5 years

With a fall in Net Profit of -20.67%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
The company has declared negative results in Dec 24 after 2 consecutive negative quarters
NET SALES(HY) At CNY 67.53 MM has Grown at -28.82%
NET PROFIT(HY) At CNY 4.82 MM has Grown at -83.08%
INTEREST(HY) At CNY 0.09 MM has Grown at 39.7%

With ROE of 3.24%, it has a very expensive valuation with a 5.18 Price to Book Value

Over the past year, while the stock has generated a return of 25.08%, its profits have fallen by -79.3%

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 Specialty Chemicals)

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

Is Liuzhou Chemical Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Liuzhou Chemical Industry Co., Ltd.

4.0%

1.56

36.53%

China Shanghai Composite

15.45%

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)

-1.88%

EBIT Growth (5y)

14.78%

EBIT to Interest (avg)

12.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.79

Sales to Capital Employed (avg)

0.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

27.17%

ROE (avg)

6.72%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

160

Industry P/E

Price to Book Value

5.18

EV to EBIT

262.96

EV to EBITDA

116.55

EV to Capital Employed

17.36

EV to Sales

15.91

PEG Ratio

Dividend Yield

ROCE (Latest)

6.60%

ROE (Latest)

3.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 872.37 MM

-35What is not working for the Company

NET SALES(HY)

At CNY 67.53 MM has Grown at -28.82%

NET PROFIT(HY)

At CNY 4.82 MM has Grown at -83.08%

INTEREST(HY)

At CNY 0.09 MM has Grown at 39.7%

OPERATING CASH FLOW(Y)

Lowest at CNY 15.5 MM

ROCE(HY)

Lowest at 1.1%

OPERATING PROFIT(Q)

Lowest at CNY 0.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.17 %

RAW MATERIAL COST(Y)

Grown by 60.36% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.36 times

Here's what is working for Liuzhou Chemical Industry Co., Ltd.

Cash and Eqv

Highest at CNY 872.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Liuzhou Chemical Industry Co., Ltd.

Net Sales

At CNY 67.53 MM has Grown at -28.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY 4.82 MM has Grown at -83.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.09 MM has Grown at 39.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 0.84 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.17 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY 15.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 2.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 60.36% (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