Longhua Technology Group (Luoyang) Co., Ltd. (300263) 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

Longhua Technology Group (Luoyang) Co., Ltd.

Why is Longhua Technology Group (Luoyang) Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.42% and Operating profit at -0.78% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.42% and Operating profit at -0.78% over the last 5 years

Positive results in Mar 25

NET PROFIT(HY) At CNY 41.88 MM has Grown at 450.29%
OPERATING CASH FLOW(Y) Highest at CNY 181.79 MM
ROCE(HY) Highest at 3.9%

With ROE of 5.49%, it has a fair valuation with a 1.98 Price to Book Value

Over the past year, while the stock has generated a return of 10.13%, its profits have risen by 33.6% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Longhua Technology Group (Luoyang) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Longhua Technology Group (Luoyang) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Longhua Technology Group (Luoyang) Co., Ltd.

-100.0%

0.93

43.42%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.42%

EBIT Growth (5y)

-0.78%

EBIT to Interest (avg)

4.97

Debt to EBITDA (avg)

4.08

Net Debt to Equity (avg)

0.55

Sales to Capital Employed (avg)

0.49

Tax Ratio

17.75%

Dividend Payout Ratio

33.99%

Pledged Shares

Institutional Holding

ROCE (avg)

5.64%

ROE (avg)

6.52%

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

1.98

EV to EBIT

33.46

EV to EBITDA

23.15

EV to Capital Employed

1.62

EV to Sales

2.73

PEG Ratio

1.08

Dividend Yield

0.61%

ROCE (Latest)

4.85%

ROE (Latest)

5.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

13What is working for the Company

NET PROFIT(HY)

At CNY 41.88 MM has Grown at 450.29%

OPERATING CASH FLOW(Y)

Highest at CNY 181.79 MM

ROCE(HY)

Highest at 3.9%

RAW MATERIAL COST(Y)

Fallen by -2.06% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.59%

-10What is not working for the Company

INTEREST(HY)

At CNY 53.7 MM has Grown at 36.54%

DEBT-EQUITY RATIO (HY)

Highest at 54.92 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.19%

PRE-TAX PROFIT(Q)

Fallen at -28.42%

Here's what is working for Longhua Technology Group (Luoyang) Co., Ltd.

Net Profit

At CNY 41.88 MM has Grown at 450.29%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 181.79 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 1.59%

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 -2.06% (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 Longhua Technology Group (Luoyang) Co., Ltd.

Interest

At CNY 53.7 MM has Grown at 36.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Fallen at -28.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 54.92 %

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

Inventory Turnover Ratio

Lowest at 2.19%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income