Luxin Venture Capital Group Co., Ltd. (600783) 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

Luxin Venture Capital Group Co., Ltd.

Why is Luxin Venture Capital Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

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 -9.83% and Operating profit at 0.87% 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 5.87% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -9.83% and Operating profit at 0.87% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 141.94 MM
NET PROFIT(HY) Higher at CNY 183.52 MM
PRE-TAX PROFIT(Q) At CNY 22.28 MM has Grown at 179.52%

With ROE of 3.45%, it has a expensive valuation with a 2.08 Price to Book Value

Over the past year, while the stock has generated a return of 82.87%, its profits have fallen by -38.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Luxin Venture Capital Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Luxin Venture Capital Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Luxin Venture Capital Group Co., Ltd.

55.65%

1.83

55.87%

China Shanghai Composite

19.22%

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)

-7.54%

EBIT Growth (5y)

4.46%

EBIT to Interest (avg)

-0.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.01

Tax Ratio

22.33%

Dividend Payout Ratio

33.54%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

5.87%

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

3.80

EV to EBIT

-249.34

EV to EBITDA

-310.94

EV to Capital Employed

2.87

EV to Sales

225.76

PEG Ratio

0.11

Dividend Yield

0.31%

ROCE (Latest)

-1.15%

ROE (Latest)

4.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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 125.71 MM

RAW MATERIAL COST(Y)

Fallen by -48.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.25 times

NET PROFIT(Q)

At CNY -13.85 MM has Grown at 64.3%

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 51.17 %

NET SALES(Q)

Fallen at -12.92%

PRE-TAX PROFIT(Q)

Lowest at CNY -29.33 MM

Here's what is working for Luxin Venture Capital Group Co., Ltd.

Operating Cash Flow

Highest at CNY 125.71 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY -13.85 MM has Grown at 64.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -48.76% (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 Luxin Venture Capital Group Co., Ltd.

Net Sales

Fallen at -12.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY -29.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 51.17 %

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