Lizhong Sitong Light Alloys Group Co., Ltd. (300428) 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

Lizhong Sitong Light Alloys Group Co., Ltd.

Why is Lizhong Sitong Light Alloys Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 39.57% and Operating profit at 15.08% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.43% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY -194.63 MM
NET PROFIT(9M) At CNY 486.35 MM has Grown at -22.35%
ROCE(HY) Lowest at 8.29%

With ROE of 9.61%, it has a fair valuation with a 1.69 Price to Book Value

Over the past year, while the stock has generated a return of 21.95%, its profits have fallen by -2.2%
At the current price, the company has a high dividend yield of 1.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lizhong Sitong Light Alloys Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lizhong Sitong Light Alloys Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lizhong Sitong Light Alloys Group Co., Ltd.

18.27%

0.62

43.63%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

39.57%

EBIT Growth (5y)

15.08%

EBIT to Interest (avg)

2.61

Debt to EBITDA (avg)

6.42

Net Debt to Equity (avg)

1.29

Sales to Capital Employed (avg)

1.40

Tax Ratio

13.83%

Dividend Payout Ratio

30.06%

Pledged Shares

Institutional Holding

ROCE (avg)

5.22%

ROE (avg)

9.43%

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

1.69

EV to EBIT

30.53

EV to EBITDA

16.88

EV to Capital Employed

1.31

EV to Sales

0.77

PEG Ratio

Dividend Yield

1.63%

ROCE (Latest)

4.28%

ROE (Latest)

9.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

7What is working for the Company

NET SALES(HY)

At CNY 15,020.83 MM has Grown at 23.44%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.21%

CASH AND EQV(HY)

Highest at CNY 6,968.24 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -194.63 MM

NET PROFIT(9M)

At CNY 486.35 MM has Grown at -22.35%

ROCE(HY)

Lowest at 8.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 244.36

RAW MATERIAL COST(Y)

Grown by 7.21% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 129.06 %

OPERATING PROFIT(Q)

Lowest at CNY 189.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.64 %

Here's what is working for Lizhong Sitong Light Alloys Group Co., Ltd.

Net Sales

At CNY 15,020.83 MM has Grown at 23.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 6.21% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 6,968.24 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 Lizhong Sitong Light Alloys Group Co., Ltd.

Interest Coverage Ratio

Lowest at 244.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 486.35 MM has Grown at -22.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -194.63 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 189.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 129.06 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.21% (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