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

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 -1.87% and Operating profit at -29.10% over the last 5 years

With a fall in Net Sales of -21.05%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 282.99 MM
INTEREST(HY) At CNY 0.84 MM has Grown at 14%
PRE-TAX PROFIT(Q) At CNY 2.99 MM has Fallen at -95.87%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -23.68%, its profits have fallen by -103.1%
At the current price, the company has a high dividend yield of 9.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.68% 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Luyang Energy-Saving Materials Co., Ltd.

-25.26%

-1.10

38.09%

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)

-1.87%

EBIT Growth (5y)

-29.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.13

Tax Ratio

17.91%

Dividend Payout Ratio

354.19%

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.66

EV to EBIT

43.37

EV to EBITDA

22.54

EV to Capital Employed

1.80

EV to Sales

1.57

PEG Ratio

Dividend Yield

9.63%

ROCE (Latest)

4.16%

ROE (Latest)

-0.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-45What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 282.99 MM

INTEREST(HY)

At CNY 0.84 MM has Grown at 14%

PRE-TAX PROFIT(Q)

At CNY 2.99 MM has Fallen at -95.87%

NET PROFIT(Q)

At CNY 2.92 MM has Fallen at -95.14%

ROCE(HY)

Lowest at -0.52%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.46 times

INTEREST COVERAGE RATIO(Q)

Lowest at 912.69

OPERATING PROFIT MARGIN(Q)

Lowest at 0.62 %

RAW MATERIAL COST(Y)

Grown by 20.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 988.13 MM

NET SALES(Q)

Lowest at CNY 428.03 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.64 MM

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

Net Sales

At CNY 428.03 MM has Fallen at -21.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 2.99 MM has Fallen at -95.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.92 MM has Fallen at -95.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.84 MM has Grown at 14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 282.99 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 912.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 0.62 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.46 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 428.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 2.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 988.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 20.12% (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