Why is Liuzhou Liangmianzhen Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of 6.33% and Operating profit at 6.78% over the last 5 years
3
Negative results in Sep 25
- INTEREST(HY) At CNY 1.25 MM has Grown at 40.41%
- PRE-TAX PROFIT(Q) At CNY 13.13 MM has Fallen at -38.68%
- NET PROFIT(Q) At CNY 10.22 MM has Fallen at -39.17%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 5.93% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Liuzhou Liangmianzhen Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Liuzhou Liangmianzhen Co., Ltd.
-19.48%
1.07
41.90%
China Shanghai Composite
19.22%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
7.90%
EBIT Growth (5y)
-212.65%
EBIT to Interest (avg)
-26.80
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.67
Sales to Capital Employed (avg)
0.47
Tax Ratio
26.82%
Dividend Payout Ratio
167.60%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
1.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
149
Industry P/E
Price to Book Value
1.32
EV to EBIT
-26.10
EV to EBITDA
-47.30
EV to Capital Employed
1.93
EV to Sales
1.35
PEG Ratio
7.05
Dividend Yield
0.59%
ROCE (Latest)
-7.40%
ROE (Latest)
0.88%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.92% (YoY
-18What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY -3.24 MM has Fallen at -145.61%
OPERATING CASH FLOW(Y)
Lowest at CNY 58.46 MM
ROCE(HY)
Lowest at -0.66%
NET SALES(Q)
Lowest at CNY 218.73 MM
NET PROFIT(Q)
Fallen at -31.45%
EPS(Q)
Lowest at CNY -0.07
Here's what is working for Liuzhou Liangmianzhen Co., Ltd.
Raw Material Cost
Fallen by -8.92% (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 Liangmianzhen Co., Ltd.
Pre-Tax Profit
At CNY -3.24 MM has Fallen at -145.61%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 58.46 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 218.73 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Net Profit
Fallen at -31.45%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.07
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)






