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

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 11.26% and Operating profit at -1.70% 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 11.26% and Operating profit at -1.70% over the last 5 years

With a growth in Net Profit of 39.78%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 412.18 MM
NET SALES(HY) At CNY 1,674.54 MM has Grown at 31%
ROCE(HY) Highest at 4.26%

With ROE of 5.49%, it has a fair valuation with a 2.65 Price to Book Value

Over the past year, while the stock has generated a return of 26.27%, its profits have risen by 33.6% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0.5

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.

26.27%

1.34

48.58%

China Shanghai Composite

16.67%

1.11

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.26%

EBIT Growth (5y)

-1.70%

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

2.65

EV to EBIT

42.10

EV to EBITDA

29.13

EV to Capital Employed

2.04

EV to Sales

3.43

PEG Ratio

1.44

Dividend Yield

0.46%

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 Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 412.18 MM

NET SALES(HY)

At CNY 1,674.54 MM has Grown at 31%

ROCE(HY)

Highest at 4.26%

RAW MATERIAL COST(Y)

Fallen by -12.46% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 16.86 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.7 times

NET PROFIT(Q)

Highest at CNY 68.56 MM

EPS(Q)

Highest at CNY 0.08

-6What is not working for the Company

INTEREST(HY)

At CNY 37.58 MM has Grown at 12.4%

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

Net Sales

At CNY 1,674.54 MM has Grown at 31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 412.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 68.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 16.86 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.7 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 -12.46% (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 37.58 MM has Grown at 12.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)