Why is Longzhou Group Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%
- Poor long term growth as Net Sales has grown by an annual rate of -13.34% and Operating profit at -254.52% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Negative results in Mar 25
- NET PROFIT(HY) At CNY -311.67 MM has Grown at -36.21%
- NET SALES(Q) At CNY 618.62 MM has Fallen at -16.78%
- ROCE(HY) Lowest at -29.35%
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 12.85%, its profits have fallen by -38.6%
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 Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Longzhou Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Longzhou Group Co., Ltd.
21.15%
0.73
50.14%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.34%
EBIT Growth (5y)
-254.52%
EBIT to Interest (avg)
-2.30
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.64
Sales to Capital Employed (avg)
0.68
Tax Ratio
2.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.72
EV to EBIT
-10.23
EV to EBITDA
-20.13
EV to Capital Employed
1.19
EV to Sales
1.82
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-11.64%
ROE (Latest)
-48.62%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 367.19 MM
PRE-TAX PROFIT(Q)
At CNY -41.51 MM has Grown at 65.04%
NET PROFIT(Q)
At CNY -35.33 MM has Grown at 59.46%
-23What is not working for the Company
NET PROFIT(HY)
At CNY -311.67 MM has Grown at -36.21%
NET SALES(Q)
At CNY 618.62 MM has Fallen at -16.78%
ROCE(HY)
Lowest at -29.35%
DEBT-EQUITY RATIO
(HY)
Highest at 264.22 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.85%
RAW MATERIAL COST(Y)
Grown by 408.51% (YoY
Here's what is working for Longzhou Group Co., Ltd.
Operating Cash Flow
Highest at CNY 367.19 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY -41.51 MM has Grown at 65.04%
over average net sales of the previous four periods of CNY -118.71 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -35.33 MM has Grown at 59.46%
over average net sales of the previous four periods of CNY -87.14 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Here's what is not working for Longzhou Group Co., Ltd.
Net Sales
At CNY 618.62 MM has Fallen at -16.78%
over average net sales of the previous four periods of CNY 743.33 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 264.22 % and Grown
In each half year in the last five Semi-Annual periodsMOJO 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 1.85% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 408.51% (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






