Why is Longhua Technology Group (Luoyang) Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 11.26% and Operating profit at -4.74% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.52% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 11.26% and Operating profit at -4.74% over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 214.35 MM
- NET PROFIT(HY) At CNY 73.9 MM has Grown at 76.47%
- ROCE(HY) Highest at 5.72%
4
With ROE of 4.98%, it has a fair valuation with a 2.09 Price to Book Value
- Over the past year, while the stock has generated a return of 102.91%, its profits have risen by 30.2% ; the PEG ratio of the company is 1.4
- At the current price, the company has a high dividend yield of 0.5
5
Market Beating performance in long term as well as near term
- Along with generating 102.91% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Longhua Technology Group (Luoyang) Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Longhua Technology Group (Luoyang) Co., Ltd.
24.15%
2.66
60.16%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
11.26%
EBIT Growth (5y)
-4.74%
EBIT to Interest (avg)
3.37
Debt to EBITDA (avg)
4.19
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
0.50
Tax Ratio
13.01%
Dividend Payout Ratio
29.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.79%
ROE (avg)
6.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
77
Industry P/E
Price to Book Value
3.85
EV to EBIT
74.94
EV to EBITDA
54.08
EV to Capital Employed
3.36
EV to Sales
5.24
PEG Ratio
2.56
Dividend Yield
0.29%
ROCE (Latest)
4.49%
ROE (Latest)
4.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
7What is working for the Company
ROCE(HY)
Highest at 5.43%
DEBTORS TURNOVER RATIO(HY)
Highest at 1.64 times
NET SALES(Q)
Highest at CNY 999.08 MM
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 19.46% (YoY
Here's what is working for Longhua Technology Group (Luoyang) Co., Ltd.
Debtors Turnover Ratio
Highest at 1.64 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at CNY 999.08 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Longhua Technology Group (Luoyang) Co., Ltd.
Raw Material Cost
Grown by 19.46% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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