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.

-34.51%

1.56

36.53%

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)

2.77%

EBIT Growth (5y)

-230.20%

EBIT to Interest (avg)

12.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.79

Sales to Capital Employed (avg)

0.28

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

NA (Loss Making)

Industry P/E

Price to Book Value

3.82

EV to EBIT

-38.81

EV to EBITDA

-49.24

EV to Capital Employed

16.37

EV to Sales

12.19

PEG Ratio

Dividend Yield

ROCE (Latest)

-42.19%

ROE (Latest)

-4.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -157.58% (YoY

CASH AND EQV(HY)

Highest at CNY 866.16 MM

DEBT-EQUITY RATIO (HY)

Lowest at -80.94 %

PRE-TAX PROFIT(Q)

Highest at CNY 4.35 MM

NET PROFIT(Q)

Highest at CNY 3.72 MM

EPS(Q)

Highest at CNY 0

-20What is not working for the Company

NET PROFIT(HY)

At CNY -29 MM has Grown at -2,324.49%

NET SALES(HY)

At CNY 63.39 MM has Grown at -14.91%

OPERATING CASH FLOW(Y)

Lowest at CNY -1.38 MM

ROCE(HY)

Lowest at -4.46%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.98 times

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

Pre-Tax Profit

At CNY 4.35 MM has Grown at 158.34%

over average net sales of the previous four periods of CNY -7.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.72 MM has Grown at 157.82%

over average net sales of the previous four periods of CNY -6.43 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 4.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 3.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 866.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -80.94 %

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 -157.58% (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 Liuzhou Chemical Industry Co., Ltd.

Net Sales

At CNY 63.39 MM has Grown at -14.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -1.38 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 1.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio