Luxshare Precision Industry Co. Ltd. (002475) 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

Luxshare Precision Industry Co. Ltd.

Why is Luxshare Precision Industry Co. Ltd. ?

Flat results in Mar 25

ROCE(HY) Lowest at 21.2%
INTEREST(Q) At CNY 380.83 MM has Grown at 11.36%
INTEREST COVERAGE RATIO(Q) Lowest at 622.33

With ROE of 22.53%, it has a fair valuation with a 6.27 Price to Book Value

Over the past year, while the stock has generated a return of 42.68%, its profits have risen by 30.7% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0.3

Majority shareholders : Non Institution

Consistent Returns over the last 3 years

Along with generating 42.68% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Luxshare Precision Industry 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 Luxshare Precision Industry Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Luxshare Precision Industry Co. Ltd.

47.93%

1.74

46.77%

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)

30.20%

EBIT Growth (5y)

10.40%

EBIT to Interest (avg)

10.43

Debt to EBITDA (avg)

0.78

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

2.09

Tax Ratio

12.66%

Dividend Payout Ratio

10.75%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

16.39%

ROE (avg)

22.61%

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

6.27

EV to EBIT

43.24

EV to EBITDA

20.82

EV to Capital Employed

5.80

EV to Sales

1.65

PEG Ratio

0.91

Dividend Yield

0.30%

ROCE (Latest)

13.41%

ROE (Latest)

22.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

7What is working for the Company

NET SALES(HY)

At CNY 152,995.92 MM has Grown at 19.43%

RAW MATERIAL COST(Y)

Fallen by -22.56% (YoY

CASH AND EQV(HY)

Highest at CNY 125,108.67 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.02%

-13What is not working for the Company

ROCE(HY)

Lowest at 21.2%

INTEREST(Q)

At CNY 380.83 MM has Grown at 11.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 622.33

DEBT-EQUITY RATIO (HY)

Highest at 41.62 %

OPERATING PROFIT(Q)

Lowest at CNY 2,370.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.85 %

Here's what is working for Luxshare Precision Industry Co. Ltd.

Net Sales

At CNY 152,995.92 MM has Grown at 19.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 125,108.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 8.02%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -22.56% (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 Luxshare Precision Industry Co. Ltd.

Interest

At CNY 380.83 MM has Grown at 11.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 622.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 2,370.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 41.62 %

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