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

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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 -0.18% and Operating profit at 15.09% over the last 5 years

With a fall in Operating Profit of -16.2%, the company declared Very Negative results in Mar 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
INTEREST(HY) At CNY 0.23 MM has Grown at 343.29%
PRE-TAX PROFIT(Q) At CNY 2.56 MM has Fallen at -65.43%
NET PROFIT(Q) At CNY 2.18 MM has Fallen at -71.08%

With ROE of 3.24%, it has a very expensive valuation with a 4.99 Price to Book Value

Over the past year, while the stock has generated a return of 32.90%, 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.

31.63%

1.42

46.61%

China Shanghai Composite

15.85%

1.04

14.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.18%

EBIT Growth (5y)

15.09%

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

154

Industry P/E

Price to Book Value

4.99

EV to EBIT

251.87

EV to EBITDA

111.64

EV to Capital Employed

16.62

EV to Sales

15.24

PEG Ratio

Dividend Yield

ROCE (Latest)

6.60%

ROE (Latest)

3.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 31.08 MM

CASH AND EQV(HY)

Highest at CNY 865.44 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 36.86%

-29What is not working for the Company

INTEREST(HY)

At CNY 0.23 MM has Grown at 343.29%

PRE-TAX PROFIT(Q)

At CNY 2.56 MM has Fallen at -65.43%

NET PROFIT(Q)

At CNY 2.18 MM has Fallen at -71.08%

RAW MATERIAL COST(Y)

Grown by 12.41% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.51%

OPERATING PROFIT(Q)

Lowest at CNY -0.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.74 %

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

Operating Cash Flow

Highest at CNY 31.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 865.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 36.86%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At CNY 0.23 MM has Grown at 343.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 2.56 MM has Fallen at -65.43%

over average net sales of the previous four periods of CNY 7.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.18 MM has Fallen at -71.08%

over average net sales of the previous four periods of CNY 7.54 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -0.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.51%

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 12.41% (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