ScoreWhy is Long Yuan Construction Group Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.08%
- Poor long term growth as Net Sales has grown by an annual rate of -21.14% and Operating profit at -11.55% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- NET PROFIT(Q) At CNY -326.84 MM has Fallen at -235.29%
- INTEREST(Q) At CNY 396.35 MM has Grown at 20.2%
- INTEREST COVERAGE RATIO(Q) Lowest at 17.56
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -19.69%, its profits have risen by 67.3%
3
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.69% returns
Real-Time Research ReportHow 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 Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Long Yuan Construction Group Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Long Yuan Construction Group Co., Ltd.
-28.5%
0.74
35.36%
China Shanghai Composite
15.45%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-21.14%
EBIT Growth (5y)
-11.55%
EBIT to Interest (avg)
1.46
Debt to EBITDA (avg)
116.88
Net Debt to Equity (avg)
2.12
Sales to Capital Employed (avg)
0.25
Tax Ratio
18.26%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.08%
ROE (avg)
2.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.53
EV to EBIT
25.48
EV to EBITDA
24.21
EV to Capital Employed
0.85
EV to Sales
3.89
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.32%
ROE (Latest)
-3.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
NET PROFIT(HY)
Higher at CNY -449.01 MM
RAW MATERIAL COST(Y)
Fallen by -26.79% (YoY
-32What is not working for the Company
NET PROFIT(Q)
At CNY -326.84 MM has Fallen at -235.29%
INTEREST(Q)
At CNY 396.35 MM has Grown at 20.2%
INTEREST COVERAGE RATIO(Q)
Lowest at 17.56
CASH AND EQV(HY)
Lowest at CNY 2,200.18 MM
DEBT-EQUITY RATIO
(HY)
Highest at 217.76 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 105.2 times
NET SALES(Q)
Lowest at CNY 1,214.36 MM
OPERATING PROFIT(Q)
Lowest at CNY 69.58 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.73 %
PRE-TAX PROFIT(Q)
Lowest at CNY -350.79 MM
Here's what is working for Long Yuan Construction Group Co., Ltd.
Raw Material Cost
Fallen by -26.79% (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 Long Yuan Construction Group Co., Ltd.
Net Sales
At CNY 1,214.36 MM has Fallen at -28.7%
over average net sales of the previous four periods of CNY 1,703.09 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -350.79 MM has Fallen at -539.29%
over average net sales of the previous four periods of CNY -54.87 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -326.84 MM has Fallen at -235.29%
over average net sales of the previous four periods of CNY -97.48 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 396.35 MM has Grown at 20.2%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 17.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at CNY 1,214.36 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 69.58 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -350.79 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Cash and Eqv
Lowest at CNY 2,200.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 217.76 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 105.2 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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