Loctek Ergonomic Technology Corp. (300729) 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

Loctek Ergonomic Technology Corp.

Why is Loctek Ergonomic Technology Corp. ?

ROCE(HY) Lowest at 5.64%
DEBT-EQUITY RATIO (HY) Highest at 91.54 %
DEBTORS TURNOVER RATIO(HY) Lowest at 12.74 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.61% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Miscellaneous)

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

Is Loctek Ergonomic Technology Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Loctek Ergonomic Technology Corp.

-100.0%

-1.47

25.17%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.02%

EBIT Growth (5y)

4.69%

EBIT to Interest (avg)

4.07

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.93

Tax Ratio

12.83%

Dividend Payout Ratio

39.47%

Pledged Shares

Institutional Holding

ROCE (avg)

9.72%

ROE (avg)

13.86%

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

0.79

EV to EBIT

11.57

EV to EBITDA

4.94

EV to Capital Employed

0.83

EV to Sales

0.58

PEG Ratio

Dividend Yield

2.81%

ROCE (Latest)

7.18%

ROE (Latest)

5.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,155.62 MM

RAW MATERIAL COST(Y)

Fallen by -14.92% (YoY

-28What is not working for the Company

ROCE(HY)

Lowest at 5.64%

DEBT-EQUITY RATIO (HY)

Highest at 91.54 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.74 times

INTEREST(Q)

At CNY 40.33 MM has Grown at 54.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 134.64

NET SALES(Q)

Lowest at CNY 1,496.17 MM

OPERATING PROFIT(Q)

Lowest at CNY 54.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.63 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.15 MM

NET PROFIT(Q)

Lowest at CNY 0.6 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for Loctek Ergonomic Technology Corp.

Operating Cash Flow

Highest at CNY 1,155.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -14.92% (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 Loctek Ergonomic Technology Corp.

Pre-Tax Profit

At CNY 1.15 MM has Fallen at -97.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.6 MM has Fallen at -98.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 40.33 MM has Grown at 54.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 134.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 91.54 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 12.74 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 1,496.17 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 54.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 0.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)