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Luoniushan Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Other Agricultural Products
  • ISIN: CNE000000CR6
  • SHE: 000735
CNY
5.64
-0.16 (-2.76%)

Sep 24

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Luoniushan Co., Ltd.

Why is Luoniushan Co., Ltd. ?

1
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)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 9.04% and Operating profit at 15.89% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 2.56% signifying low profitability per unit of shareholders funds
3
Flat results in Mar 26
  • OPERATING CASH FLOW(Y) Lowest at CNY -146.97 MM
  • NET SALES(Q) At CNY 585.79 MM has Fallen at -30.42%
  • RAW MATERIAL COST(Y) Grown by 62.66% (YoY)
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 -17.65%, its profits have fallen by -87.7%
5
Below par performance in long term as well as near term
  • Along with generating -17.65% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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, Low Return

Absolute
Risk Adjusted
Volatility
Luoniushan Co., Ltd.
-10.9%
0.14
47.62%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
9.04%
EBIT Growth (5y)
15.89%
EBIT to Interest (avg)
1.37
Debt to EBITDA (avg)
3.11
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
0.55
Tax Ratio
100.00%
Dividend Payout Ratio
26.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.48%
ROE (avg)
2.56%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
218
Industry P/E
Price to Book Value
1.32
EV to EBIT
37.11
EV to EBITDA
16.71
EV to Capital Employed
1.26
EV to Sales
1.86
PEG Ratio
NA
Dividend Yield
1.15%
ROCE (Latest)
3.39%
ROE (Latest)
0.61%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
NET SALES(9M)

Higher at CNY 2,989.49 MM

-28What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY -126.76 MM

NET SALES(Q)

At CNY 655.5 MM has Fallen at -25.34%

PRE-TAX PROFIT(Q)

At CNY -150.27 MM has Fallen at -544.46%

NET PROFIT(Q)

At CNY -146.52 MM has Fallen at -1,539.19%

ROCE(HY)

Lowest at -3.64%

RAW MATERIAL COST(Y)

Grown by 164.84% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 29.62 %

INTEREST(Q)

Highest at CNY 11.5 MM

Here's what is not working for Luoniushan Co., Ltd.

Net Sales
At CNY 655.5 MM has Fallen at -25.34%
over average net sales of the previous four periods of CNY 877.96 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit
At CNY -150.27 MM has Fallen at -544.46%
over average net sales of the previous four periods of CNY 33.81 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY -146.52 MM has Fallen at -1,539.19%
over average net sales of the previous four periods of CNY 10.18 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow
Lowest at CNY -126.76 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest
Highest at CNY 11.5 MM
in the last five periods and Increased by 7.86% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 29.62 %
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

Raw Material Cost
Grown by 164.84% (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

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