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

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 14.86% and Operating profit at 18.02% 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 14.86% and Operating profit at 18.02% over the last 5 years

INTEREST(HY) At CNY 34.19 MM has Grown at 32.33%
INTEREST COVERAGE RATIO(Q) Lowest at 160.7
ROCE(HY) Lowest at 4.88%

Below par performance in long term as well as near term

Along with generating -10.23% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Longxing Chemical Stock Co., Ltd.

-10.23%

1.10

28.18%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.86%

EBIT Growth (5y)

18.02%

EBIT to Interest (avg)

3.75

Debt to EBITDA (avg)

5.11

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.13

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

1.70

EV to EBIT

31.91

EV to EBITDA

17.98

EV to Capital Employed

1.35

EV to Sales

1.13

PEG Ratio

Dividend Yield

1.88%

ROCE (Latest)

4.22%

ROE (Latest)

6.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 172.33 MM

-38What is not working for the Company

INTEREST(HY)

At CNY 34.19 MM has Grown at 32.33%

INTEREST COVERAGE RATIO(Q)

Lowest at 160.7

ROCE(HY)

Lowest at 4.88%

OPERATING PROFIT(Q)

Lowest at CNY 26.36 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 11 MM

NET PROFIT(Q)

Lowest at CNY 12.65 MM

RAW MATERIAL COST(Y)

Grown by 24.52% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 108.62 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.05 times

OPERATING PROFIT MARGIN(Q)

Lowest at 2.36 %

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

Operating Cash Flow

Highest at CNY 172.33 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

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

Interest

At CNY 34.19 MM has Grown at 32.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 160.7 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 11 MM has Fallen at -70.09%

over average net sales of the previous four periods of CNY 36.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.65 MM has Fallen at -60.43%

over average net sales of the previous four periods of CNY 31.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 26.36 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 11 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 12.65 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at 2.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 108.62 %

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

Inventory Turnover Ratio

Lowest at 7.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 24.52% (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