Luoniushan Co., Ltd. (000735) 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

Luoniushan Co., Ltd.

Why is Luoniushan Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.05%

The company has been able to generate a Return on Capital Employed (avg) of 2.05% signifying low profitability per unit of total capital (equity and debt)

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 3.46% and Operating profit at -9.32% 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 2.56% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -6.54%, the company declared Very Negative results in Mar 25

NET SALES(Q) At CNY 441.44 MM has Fallen at -39.91%
PRE-TAX PROFIT(Q) At CNY 16.36 MM has Fallen at -81.86%
NET PROFIT(Q) At CNY 8.74 MM has Fallen at -87.39%

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 26.43%, its profits have risen by 109.6% ; the PEG ratio of the company is 6.8

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 Other Agricultural Products)

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

Is Luoniushan Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Luoniushan Co., Ltd.

11.81%

1.89

41.58%

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)

3.46%

EBIT Growth (5y)

-9.32%

EBIT to Interest (avg)

0.66

Debt to EBITDA (avg)

4.23

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

0.53

Tax Ratio

29.63%

Dividend Payout Ratio

9.52%

Pledged Shares

Institutional Holding

ROCE (avg)

2.05%

ROE (avg)

2.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

749

Industry P/E

Price to Book Value

1.57

EV to EBIT

163.23

EV to EBITDA

21.73

EV to Capital Employed

1.48

EV to Sales

3.30

PEG Ratio

6.83

Dividend Yield

0.35%

ROCE (Latest)

0.91%

ROE (Latest)

0.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

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

8What is working for the Company

NET PROFIT(HY)

At CNY -50.69 MM has Grown at 68.1%

RAW MATERIAL COST(Y)

Fallen by -32.51% (YoY

-25What is not working for the Company

NET SALES(Q)

At CNY 441.44 MM has Fallen at -39.91%

PRE-TAX PROFIT(Q)

At CNY 16.36 MM has Fallen at -81.86%

NET PROFIT(Q)

At CNY 8.74 MM has Fallen at -87.39%

OPERATING CASH FLOW(Y)

Lowest at CNY 328.78 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 59.5

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.09%

OPERATING PROFIT(Q)

Lowest at CNY 5.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.28 %

Here's what is working for Luoniushan Co., Ltd.

Raw Material Cost

Fallen by -32.51% (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 Luoniushan Co., Ltd.

Net Sales

At CNY 441.44 MM has Fallen at -39.91%

over average net sales of the previous four periods of CNY 734.64 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 16.36 MM has Fallen at -81.86%

over average net sales of the previous four periods of CNY 90.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.74 MM has Fallen at -87.39%

over average net sales of the previous four periods of CNY 69.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 59.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 328.78 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 5.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 0.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 16.09%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio