Why is Longkou Union Chemical Co., Ltd. ?
1
The company has declared Positive results for the last 5 consecutive quarters
- ROCE(HY) Highest at 8.14%
- RAW MATERIAL COST(Y) Fallen by -7.52% (YoY)
- PRE-TAX PROFIT(Q) Highest at CNY 18.52 MM
2
With ROE of 8.26%, it has a fair valuation with a 3.99 Price to Book Value
- Over the past year, while the stock has generated a return of 376.88%, its profits have risen by 41.2% ; the PEG ratio of the company is 48.3
3
Market Beating Performance
- The stock has generated a return of 376.88% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Longkou Union Chemical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Longkou Union Chemical Co., Ltd.
398.27%
5.75
82.48%
China Shanghai Composite
14.03%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
14.85%
EBIT Growth (5y)
61.96%
EBIT to Interest (avg)
39.52
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.59
Sales to Capital Employed (avg)
0.65
Tax Ratio
10.64%
Dividend Payout Ratio
28.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.43%
ROE (avg)
6.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
Price to Book Value
3.99
EV to EBIT
45.90
EV to EBITDA
35.86
EV to Capital Employed
7.42
EV to Sales
4.77
PEG Ratio
48.28
Dividend Yield
NA
ROCE (Latest)
16.18%
ROE (Latest)
8.26%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
9What is working for the Company
ROCE(HY)
Highest at 8.14%
RAW MATERIAL COST(Y)
Fallen by -7.52% (YoY
PRE-TAX PROFIT(Q)
Highest at CNY 18.52 MM
NET PROFIT(Q)
Highest at CNY 16.37 MM
EPS(Q)
Highest at CNY 0.15
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 49.41 MM
Here's what is working for Longkou Union Chemical Co., Ltd.
Pre-Tax Profit
Highest at CNY 18.52 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 16.37 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.15
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -7.52% (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 Longkou Union Chemical Co., Ltd.
Operating Cash Flow
Lowest at CNY 49.41 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






