Luyang Energy-Saving Materials Co., Ltd. (002088) 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

Luyang Energy-Saving Materials Co., Ltd.

Why is Luyang Energy-Saving Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.17% and Operating profit at 5.58% over the last 5 years

With a fall in Net Sales of -31.09%, the company declared Very Negative results in Mar 25

INTEREST(HY) At CNY 0.73 MM has Grown at 259.2%
OPERATING CASH FLOW(Y) Lowest at CNY 443.14 MM
ROCE(HY) Lowest at 15.66%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.99% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

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 Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Luyang Energy-Saving Materials Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Luyang Energy-Saving Materials Co., Ltd.

-100.0%

-0.51

29.89%

China Shanghai Composite

15.19%

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)

9.17%

EBIT Growth (5y)

5.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.15

Tax Ratio

17.91%

Dividend Payout Ratio

85.00%

Pledged Shares

Institutional Holding

ROCE (avg)

22.84%

ROE (avg)

17.86%

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

2.59

EV to EBIT

15.51

EV to EBITDA

12.29

EV to Capital Employed

2.77

EV to Sales

2.08

PEG Ratio

Dividend Yield

6.07%

ROCE (Latest)

17.88%

ROE (Latest)

13.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-27What is not working for the Company

INTEREST(HY)

At CNY 0.73 MM has Grown at 259.2%

OPERATING CASH FLOW(Y)

Lowest at CNY 443.14 MM

ROCE(HY)

Lowest at 15.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 30,304.61

RAW MATERIAL COST(Y)

Grown by 11% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.89%

NET SALES(Q)

Lowest at CNY 537.13 MM

OPERATING PROFIT(Q)

Lowest at CNY 62.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.69 %

PRE-TAX PROFIT(Q)

Lowest at CNY 72.42 MM

NET PROFIT(Q)

Lowest at CNY 60.04 MM

EPS(Q)

Lowest at CNY 0.12

Here's what is not working for Luyang Energy-Saving Materials Co., Ltd.

Interest

At CNY 0.73 MM has Grown at 259.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 537.13 MM has Fallen at -22.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 443.14 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 Coverage Ratio

Lowest at 30,304.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 537.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 62.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 72.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 60.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -27.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.89%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11% (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

Non Operating Income

Highest at CNY 0.14 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income