Long Yuan Construction Group Co., Ltd. (600491) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Long Yuan Construction Group Co., Ltd.

Why is Long Yuan Construction Group Co., Ltd. ?

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 -19.43% and Operating profit at -6.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -9.46%, the company declared Very Negative results in Mar 25

INTEREST(HY) At CNY 840.69 MM has Grown at 13.25%
CASH AND EQV(HY) Lowest at CNY 2,393.28 MM
NET SALES(Q) Lowest at CNY 1,388.39 MM

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 -26.04%, its profits have risen by 67.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.04% 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 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?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Long Yuan Construction Group Co., Ltd.

-28.61%

0.66

33.80%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-19.43%

EBIT Growth (5y)

-6.49%

EBIT to Interest (avg)

1.46

Debt to EBITDA (avg)

116.88

Net Debt to Equity (avg)

2.12

Sales to Capital Employed (avg)

0.27

Tax Ratio

18.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.08%

ROE (avg)

2.77%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.52

EV to EBIT

25.39

EV to EBITDA

24.12

EV to Capital Employed

0.84

EV to Sales

3.88

PEG Ratio

Dividend Yield

ROCE (Latest)

3.32%

ROE (Latest)

-3.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

18What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -65.99% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 0.35%

OPERATING PROFIT MARGIN(Q)

Highest at 24.43 %

PRE-TAX PROFIT(Q)

Highest at CNY 245.02 MM

NET PROFIT(Q)

Highest at CNY 192.55 MM

EPS(Q)

Highest at CNY 0.13

-18What is not working for the Company

INTEREST(HY)

At CNY 840.69 MM has Grown at 13.25%

CASH AND EQV(HY)

Lowest at CNY 2,393.28 MM

NET SALES(Q)

Lowest at CNY 1,388.39 MM

Here's what is working for Long Yuan Construction Group Co., Ltd.

Pre-Tax Profit

At CNY 245.02 MM has Grown at 273.25%

over average net sales of the previous four periods of CNY -141.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 192.55 MM has Grown at 216.1%

over average net sales of the previous four periods of CNY -165.85 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit Margin

Highest at 24.43 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 245.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 192.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 0.35%

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 -65.99% (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 1,388.39 MM has Fallen at -38.95%

over average net sales of the previous four periods of CNY 2,274.24 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 840.69 MM has Grown at 13.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 1,388.39 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 2,393.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents