Luoyang Xinqianglian Slewing Bearing Co., Ltd. (300850) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Luoyang Xinqianglian Slewing Bearing Co., Ltd.

Why is Luoyang Xinqianglian Slewing Bearing Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.04% and Operating profit at 13.00% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.12% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 117.21 MM
NET SALES(Q) Lowest at CNY 886.44 MM
OPERATING PROFIT(Q) Lowest at CNY 200.87 MM

With ROE of 11.81%, it has a fair valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of -18.06%, its profits have risen by 164.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 1

Below par performance in long term as well as near term

Along with generating -18.06% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Luoyang Xinqianglian Slewing Bearing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Luoyang Xinqianglian Slewing Bearing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Luoyang Xinqianglian Slewing Bearing Co., Ltd.

-20.72%

1.28

49.25%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.04%

EBIT Growth (5y)

13.00%

EBIT to Interest (avg)

6.89

Debt to EBITDA (avg)

3.25

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.36

Tax Ratio

10.38%

Dividend Payout Ratio

13.85%

Pledged Shares

Institutional Holding

ROCE (avg)

13.09%

ROE (avg)

12.12%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

9.52

EV to EBITDA

7.18

EV to Capital Employed

0.94

EV to Sales

1.97

PEG Ratio

0.05

Dividend Yield

1.04%

ROCE (Latest)

9.86%

ROE (Latest)

11.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

NET SALES(9M)

At CNY 3,304.7 MM has Grown at 17.41%

NET PROFIT(HY)

At CNY 333.56 MM has Grown at 46.2%

RAW MATERIAL COST(Y)

Fallen by -16% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 38.1 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 117.21 MM

NET SALES(Q)

Lowest at CNY 886.44 MM

OPERATING PROFIT(Q)

Lowest at CNY 200.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.66 %

Here's what is working for Luoyang Xinqianglian Slewing Bearing Co., Ltd.

Net Profit

At CNY 333.56 MM has Grown at 46.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 38.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -16% (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 Luoyang Xinqianglian Slewing Bearing Co., Ltd.

Net Sales

At CNY 886.44 MM has Fallen at -23.24%

over average net sales of the previous four periods of CNY 1,154.82 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 117.21 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)

Net Sales

Lowest at CNY 886.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 200.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 22.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales