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. ?

INTEREST(HY) At CNY 106.64 MM has Grown at 53.34%
INTEREST COVERAGE RATIO(Q) Lowest at 143.92
ROCE(HY) Lowest at 7%

Below par performance in long term as well as near term

Along with generating -20.51% returns in the last 1 year, the stock has also underperformed 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 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Loctek Ergonomic Technology Corp.

-100.0%

-0.50

40.55%

China Shanghai Composite

15.45%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.38%

EBIT Growth (5y)

1.38%

EBIT to Interest (avg)

4.07

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.86

Tax Ratio

12.83%

Dividend Payout Ratio

28.57%

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

1.39

EV to EBIT

21.86

EV to EBITDA

9.32

EV to Capital Employed

1.37

EV to Sales

0.88

PEG Ratio

Dividend Yield

1.60%

ROCE (Latest)

6.25%

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly 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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 8.84 times

RAW MATERIAL COST(Y)

Fallen by -0.43% (YoY

CASH AND EQV(HY)

Highest at CNY 4,706.52 MM

NET SALES(Q)

Highest at CNY 1,701.64 MM

-33What is not working for the Company

INTEREST(HY)

At CNY 106.64 MM has Grown at 53.34%

INTEREST COVERAGE RATIO(Q)

Lowest at 143.92

ROCE(HY)

Lowest at 7%

DEBT-EQUITY RATIO (HY)

Highest at 81.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.93 times

OPERATING PROFIT(Q)

Lowest at CNY 71.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.21 %

PRE-TAX PROFIT(Q)

Lowest at CNY 46.69 MM

NET PROFIT(Q)

Lowest at CNY 39.35 MM

EPS(Q)

Lowest at CNY 0.12

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

Inventory Turnover Ratio

Highest at 8.84 times 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

Net Sales

Highest at CNY 1,701.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 4,706.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.43% (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.

Interest

At CNY 106.64 MM has Grown at 53.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 143.92 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 46.69 MM has Fallen at -65.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 39.35 MM has Fallen at -61.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 81.88 % 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

Operating Profit

Lowest at CNY 71.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 46.69 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 39.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 12.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio