Why is Loncin Motor Co., Ltd. ?
1
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 3,692.23 MM
- NET SALES(9M) At CNY 14,469.24 MM has Grown at 19.39%
- NET PROFIT(HY) At CNY 1,069.93 MM has Grown at 65.06%
2
With ROE of 16.81%, it has a very attractive valuation with a 2.64 Price to Book Value
- Over the past year, while the stock has generated a return of 44.86%, its profits have risen by 161.2% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 3.3
3
Consistent Returns over the last 3 years
- Along with generating 44.86% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Loncin Motor Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Loncin Motor Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Loncin Motor Co., Ltd.
24.42%
2.74
40.53%
China Shanghai Composite
15.45%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
12.64%
EBIT Growth (5y)
33.43%
EBIT to Interest (avg)
21.94
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.64
Sales to Capital Employed (avg)
1.52
Tax Ratio
16.83%
Dividend Payout Ratio
73.26%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.12%
ROE (avg)
9.15%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
2.64
EV to EBIT
11.16
EV to EBITDA
8.65
EV to Capital Employed
7.23
EV to Sales
0.97
PEG Ratio
0.10
Dividend Yield
3.29%
ROCE (Latest)
64.80%
ROE (Latest)
16.81%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 3,692.23 MM
NET SALES(9M)
At CNY 14,469.24 MM has Grown at 19.39%
NET PROFIT(HY)
At CNY 1,069.93 MM has Grown at 65.06%
ROCE(HY)
Highest at 19.06%
DEBT-EQUITY RATIO
(HY)
Lowest at -76.58 %
INTEREST COVERAGE RATIO(Q)
Highest at 7,680.3
DIVIDEND PAYOUT RATIO(Y)
Highest at 81.73%
RAW MATERIAL COST(Y)
Fallen by -16.04% (YoY
CASH AND EQV(HY)
Highest at CNY 17,935.5 MM
DIVIDEND PER SHARE(HY)
Highest at CNY 7.78
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Loncin Motor Co., Ltd.
Interest Coverage Ratio
Highest at 7,680.3
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At CNY 1,069.93 MM has Grown at 65.06%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -76.58 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
At CNY 14,469.24 MM has Grown at 19.39%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Cash Flow
Highest at CNY 3,692.23 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Cash and Eqv
Highest at CNY 17,935.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at CNY 7.78
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CNY)
Dividend Payout Ratio
Highest at 81.73%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -16.04% (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






