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 4.99% and Operating profit at -5.36% over the last 5 years

With a fall in Net Sales of -35.2%, the company declared Very Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 227.89 MM
NET SALES(Q) At CNY 600.59 MM has Fallen at -35.2%
PRE-TAX PROFIT(Q) At CNY 27.49 MM has Fallen at -83.55%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.01% 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.

-22.45%

-0.75

37.91%

China Shanghai Composite

15.45%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.99%

EBIT Growth (5y)

-5.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.16

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

2.52

EV to EBIT

15.11

EV to EBITDA

11.97

EV to Capital Employed

2.70

EV to Sales

2.03

PEG Ratio

Dividend Yield

6.22%

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

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-40What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 227.89 MM

NET SALES(Q)

At CNY 600.59 MM has Fallen at -35.2%

PRE-TAX PROFIT(Q)

At CNY 27.49 MM has Fallen at -83.55%

NET PROFIT(Q)

At CNY 26.82 MM has Fallen at -80.11%

ROCE(HY)

Lowest at 9.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 16,860.54

OPERATING PROFIT(Q)

Lowest at CNY 26.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.36 %

RAW MATERIAL COST(Y)

Grown by 19.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 517.87 MM

DEBT-EQUITY RATIO (HY)

Highest at -8.92 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.55 times

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

Net Sales

At CNY 600.59 MM has Fallen at -35.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 27.49 MM has Fallen at -83.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.82 MM has Fallen at -80.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 227.89 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 16,860.54

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 26.17 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.36 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 517.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -8.92 %

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

Debtors Turnover Ratio

Lowest at 1.55 times

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 19.12% (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