Why is Luenmei Quantum Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -1.85% and Operating profit at -18.21% over the last 5 years
- OPERATING CASH FLOW(Y) Lowest at CNY 1,308.76 MM
- ROCE(HY) Lowest at 6.2%
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.9%
2
With ROE of 6.28%, it has a very expensive valuation with a 1.84 Price to Book Value
- Over the past year, while the stock has generated a return of 42.45%, its profits have fallen by -19.4%
- At the current price, the company has a high dividend yield of 3.7
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 Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Luenmei Quantum Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Luenmei Quantum Co., Ltd.
42.45%
1.31
43.62%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.85%
EBIT Growth (5y)
-18.21%
EBIT to Interest (avg)
17.10
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.47
Sales to Capital Employed (avg)
0.26
Tax Ratio
21.15%
Dividend Payout Ratio
68.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.96%
ROE (avg)
9.64%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
1.84
EV to EBIT
20.96
EV to EBITDA
10.27
EV to Capital Employed
2.49
EV to Sales
4.44
PEG Ratio
NA
Dividend Yield
3.67%
ROCE (Latest)
11.86%
ROE (Latest)
6.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -11.04% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 14.1%
PRE-TAX PROFIT(Q)
Highest at CNY 780 MM
NET PROFIT(Q)
Highest at CNY 603.89 MM
EPS(Q)
Highest at CNY 0.28
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 1,308.76 MM
ROCE(HY)
Lowest at 6.2%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.9%
Here's what is working for Luenmei Quantum Co., Ltd.
Pre-Tax Profit
Highest at CNY 780 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 603.89 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.28
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 14.1%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -11.04% (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 Luenmei Quantum Co., Ltd.
Operating Cash Flow
Lowest at CNY 1,308.76 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Lowest at 2.9%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






