Longxing Chemical Stock Co., Ltd. (002442) 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

Longxing Chemical Stock Co., Ltd.

Why is Longxing Chemical Stock 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 13.50% and Operating profit at 26.62% 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 8.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.50% and Operating profit at 26.62% over the last 5 years

With a fall in Net Sales of -0.05%, the company declared Very Negative results in Mar 25

INTEREST(Q) At CNY 16.61 MM has Grown at 21.26%
INTEREST COVERAGE RATIO(Q) Lowest at 192.64
RAW MATERIAL COST(Y) Grown by 6.66% (YoY)

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 Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Longxing Chemical Stock Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Longxing Chemical Stock Co., Ltd.

22.2%

1.22

35.31%

China Shanghai Composite

14.77%

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)

13.50%

EBIT Growth (5y)

26.62%

EBIT to Interest (avg)

3.75

Debt to EBITDA (avg)

5.11

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.16

Tax Ratio

10.82%

Dividend Payout Ratio

41.28%

Pledged Shares

Institutional Holding

ROCE (avg)

6.20%

ROE (avg)

8.10%

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

1.64

EV to EBIT

31.22

EV to EBITDA

17.59

EV to Capital Employed

1.32

EV to Sales

1.11

PEG Ratio

Dividend Yield

1.95%

ROCE (Latest)

4.22%

ROE (Latest)

6.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

NET PROFIT(HY)

At CNY 58.56 MM has Grown at 73.54%

ROCE(HY)

Highest at 7.73%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.16%

-9What is not working for the Company

INTEREST(Q)

At CNY 16.61 MM has Grown at 21.26%

INTEREST COVERAGE RATIO(Q)

Lowest at 192.64

RAW MATERIAL COST(Y)

Grown by 6.66% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 107.68 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.41%

OPERATING PROFIT(Q)

Lowest at CNY 32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.03 %

Here's what is working for Longxing Chemical Stock Co., Ltd.

Net Profit

At CNY 58.56 MM has Grown at 73.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 8.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Longxing Chemical Stock Co., Ltd.

Interest

At CNY 16.61 MM has Grown at 21.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 192.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 107.68 %

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

Debtors Turnover Ratio

Lowest at 2.41%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.66% (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

Non Operating Income

Highest at CNY 0.54 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income