Liuzhou Iron & Steel Co., Ltd. (601003) 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 Iron & Steel Co., Ltd.

Why is Liuzhou Iron & Steel Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.26%

Poor long term growth as Net Sales has grown by an annual rate of 5.99% and Operating profit at -4.45% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Profit of 171.35%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 6,072.78 MM
ROCE(HY) Highest at 6.1%
RAW MATERIAL COST(Y) Fallen by -500% (YoY)

With ROE of 0.26%, it has a risky valuation with a 1.50 Price to Book Value

Over the past year, while the stock has generated a return of 77.22%, its profits have risen by 102.5% ; the PEG ratio of the company is 5.7

Market Beating performance in long term as well as near term

Along with generating 77.22% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Ferrous Metals)

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

Is Liuzhou Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Liuzhou Iron & Steel Co., Ltd.

-2.29%

1.98

52.67%

China Shanghai Composite

16.78%

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)

1.93%

EBIT Growth (5y)

-6.95%

EBIT to Interest (avg)

1.52

Debt to EBITDA (avg)

23.10

Net Debt to Equity (avg)

3.20

Sales to Capital Employed (avg)

1.80

Tax Ratio

1.35%

Dividend Payout Ratio

38.20%

Pledged Shares

Institutional Holding

ROCE (avg)

2.26%

ROE (avg)

5.00%

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

0.99

EV to EBIT

20.86

EV to EBITDA

8.87

EV to Capital Employed

1.00

EV to Sales

0.50

PEG Ratio

0.02

Dividend Yield

2.75%

ROCE (Latest)

4.78%

ROE (Latest)

10.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

9What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 261.51 %

NET PROFIT(9M)

Higher at CNY 319.08 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 11.38 times

DEBTORS TURNOVER RATIO(HY)

Highest at 24.94 times

-18What is not working for the Company

NET PROFIT(Q)

At CNY 19.33 MM has Fallen at -88.25%

INTEREST COVERAGE RATIO(Q)

Lowest at 113.63

RAW MATERIAL COST(Y)

Grown by 40.08% (YoY

CASH AND EQV(HY)

Lowest at CNY 6,893.16 MM

NET SALES(Q)

Lowest at CNY 16,017.11 MM

OPERATING PROFIT(Q)

Lowest at CNY 216.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.35 %

PRE-TAX PROFIT(Q)

Lowest at CNY 45.46 MM

Here's what is working for Liuzhou Iron & Steel Co., Ltd.

Debt-Equity Ratio

Lowest at 261.51 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 11.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 24.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Liuzhou Iron & Steel Co., Ltd.

Pre-Tax Profit

At CNY 45.46 MM has Fallen at -88.38%

over average net sales of the previous four periods of CNY 391.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.33 MM has Fallen at -88.25%

over average net sales of the previous four periods of CNY 164.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 113.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 16,017.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 216.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 45.46 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 6,893.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 40.08% (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