Longjian Road & Bridge Co., Ltd. (600853) 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

Longjian Road & Bridge Co., Ltd.

Why is Longjian Road & Bridge 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 9.78% and Operating profit at 4.82% 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 14.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.78% and Operating profit at 4.82% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 323.1 MM has Grown at 5.54%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.46%
INTEREST COVERAGE RATIO(Q) Lowest at 54.97

With ROE of 13.00%, it has a very expensive valuation with a 1.02 Price to Book Value

Over the past year, while the stock has generated a return of 6.98%, its profits have risen by 0.3% ; the PEG ratio of the company is 7.9
At the current price, the company has a high dividend yield of 1.2

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 Longjian Road & Bridge Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Longjian Road & Bridge Co., Ltd.

6.98%

0.87

33.89%

China Shanghai Composite

14.77%

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)

9.78%

EBIT Growth (5y)

4.82%

EBIT to Interest (avg)

1.48

Debt to EBITDA (avg)

11.99

Net Debt to Equity (avg)

3.97

Sales to Capital Employed (avg)

0.90

Tax Ratio

16.47%

Dividend Payout Ratio

9.73%

Pledged Shares

Institutional Holding

ROCE (avg)

5.78%

ROE (avg)

14.35%

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

1.02

EV to EBIT

20.08

EV to EBITDA

15.56

EV to Capital Employed

1.00

EV to Sales

0.89

PEG Ratio

7.87

Dividend Yield

1.21%

ROCE (Latest)

5.00%

ROE (Latest)

13.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,120.08 MM

RAW MATERIAL COST(Y)

Fallen by -6.16% (YoY

NET PROFIT(9M)

Higher at CNY 352.02 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 10.41%

-8What is not working for the Company

INTEREST(HY)

At CNY 323.1 MM has Grown at 5.54%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 54.97

NET SALES(Q)

Lowest at CNY 1,782.19 MM

OPERATING PROFIT(Q)

Lowest at CNY 87.14 MM

Here's what is working for Longjian Road & Bridge Co., Ltd.

Operating Cash Flow

Highest at CNY 1,120.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 10.41%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 352.02 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -6.16% (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 Longjian Road & Bridge Co., Ltd.

Interest Coverage Ratio

Lowest at 54.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 323.1 MM has Grown at 5.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.46% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 1,782.19 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 87.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)