Why is Lontrue Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of -13.78% and Operating profit at 7.03% over the last 5 years
3
Positive results in Mar 25
- NET PROFIT(HY) Higher at CNY -10.63 MM
- DEBTORS TURNOVER RATIO(HY) Highest at 1.88%
4
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 -29.32%, its profits have risen by 68.8%
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.32% returns
How much should you hold?
- Overall Portfolio exposure to Lontrue Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lontrue Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lontrue Co., Ltd.
-17.7%
-0.34
48.07%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.78%
EBIT Growth (5y)
7.03%
EBIT to Interest (avg)
-20.53
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.41
Tax Ratio
8.36%
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
5.59
EV to EBIT
-117.31
EV to EBITDA
-350.12
EV to Capital Employed
6.47
EV to Sales
11.81
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.52%
ROE (Latest)
-3.87%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
6What is working for the Company
NET PROFIT(HY)
Higher at CNY -10.63 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 1.88%
-13What is not working for the Company
NET SALES(Q)
At CNY 52.76 MM has Fallen at -23.77%
PRE-TAX PROFIT(Q)
At CNY -3.89 MM has Fallen at -146.07%
NET PROFIT(Q)
At CNY -3.88 MM has Fallen at -154.92%
OPERATING CASH FLOW(Y)
Lowest at CNY -41.71 MM
RAW MATERIAL COST(Y)
Grown by 19.57% (YoY
Here's what is working for Lontrue Co., Ltd.
Debtors Turnover Ratio
Highest at 1.88%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Lontrue Co., Ltd.
Net Sales
At CNY 52.76 MM has Fallen at -23.77%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -3.89 MM has Fallen at -146.07%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -3.88 MM has Fallen at -154.92%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY -41.71 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Raw Material Cost
Grown by 19.57% (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






