Lutian Machinery Co., Ltd. () 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

Lutian Machinery Co., Ltd.

Why is Lutian Machinery Co., Ltd. ?

With ROE of 13.86%, it has a very attractive valuation with a 2.55 Price to Book Value

Over the past year, while the stock has generated a return of 37.60%, its profits have risen by 60.1% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 37.60% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Lutian Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Lutian Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lutian Machinery Co., Ltd.

22.03%

1.58

35.92%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.03%

EBIT Growth (5y)

12.41%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.14

Tax Ratio

10.78%

Dividend Payout Ratio

111.22%

Pledged Shares

Institutional Holding

ROCE (avg)

30.38%

ROE (avg)

13.29%

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

2.55

EV to EBIT

14.58

EV to EBITDA

12.14

EV to Capital Employed

3.90

EV to Sales

1.42

PEG Ratio

0.31

Dividend Yield

0.73%

ROCE (Latest)

26.74%

ROE (Latest)

13.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly 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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 287.82 MM

NET SALES(9M)

At CNY 1,876.52 MM has Grown at 19.57%

NET PROFIT(HY)

At CNY 142.77 MM has Grown at 45.21%

ROCE(HY)

Highest at 14.38%

RAW MATERIAL COST(Y)

Fallen by -4.83% (YoY

-11What is not working for the Company

INTEREST(HY)

At CNY 0.12 MM has Grown at 239.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 76,045.8

DEBT-EQUITY RATIO (HY)

Highest at -42.41 %

Here's what is working for Lutian Machinery Co., Ltd.

Net Profit

At CNY 142.77 MM has Grown at 45.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

At CNY 1,876.52 MM has Grown at 19.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 287.82 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -4.83% (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 Lutian Machinery Co., Ltd.

Interest

At CNY 0.12 MM has Grown at 239.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 76,045.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -42.41 %

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