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Loncin Motor Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Automobiles
  • ISIN: CNE100001JP2
  • SHG: 603766
CNY
14.55
-0.01 (-0.07%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Loncin Motor Co., Ltd.

Why is Loncin Motor Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 16.12%
  • The company has been able to generate a Return on Capital Employed (avg) of 16.12% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 9.86% and Operating profit at 18.87% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 9.15% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 9.86% and Operating profit at 18.87% over the last 5 years
4
Positive results in Jun 26
  • DEBT-EQUITY RATIO (HY) Lowest at -79.74 %
  • INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
  • RAW MATERIAL COST(Y) Fallen by -0.56% (YoY)
5
With ROE of 16.73%, it has a expensive valuation with a 2.52 Price to Book Value
  • Over the past year, while the stock has generated a return of 16.24%, its profits have risen by 19.4% ; the PEG ratio of the company is 0.8
  • At the current price, the company has a high dividend yield of 5.9
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Loncin Motor Co., Ltd. should be less than 10%
  2. 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.
19.07%
2.58
39.97%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
9.86%
EBIT Growth (5y)
18.87%
EBIT to Interest (avg)
31.73
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.64
Sales to Capital Employed (avg)
1.60
Tax Ratio
15.49%
Dividend Payout Ratio
87.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
37.18%
ROE (avg)
9.15%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.52
EV to EBIT
9.11
EV to EBITDA
7.44
EV to Capital Employed
10.44
EV to Sales
0.86
PEG Ratio
0.78
Dividend Yield
5.90%
ROCE (Latest)
114.55%
ROE (Latest)
16.73%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
DEBT-EQUITY RATIO (HY)

Lowest at -79.74 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -0.56% (YoY

CASH AND EQV(HY)

Highest at CNY 19,594.25 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.96 times

NET SALES(Q)

Highest at CNY 5,252.9 MM

-2What is not working for the Company
NET PROFIT(9M)

At CNY 1,070.72 MM has Grown at -19.97%

Here's what is working for Loncin Motor Co., Ltd.

Debt-Equity Ratio
Lowest at -79.74 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales
Highest at CNY 5,252.9 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv
Highest at CNY 19,594.25 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 6.96 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -0.56% (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 Loncin Motor Co., Ltd.

Net Profit
At CNY 1,070.72 MM has Grown at -19.97%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

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