Ningbo Lehui International Engineering Equipment Co., Ltd. (603076) 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

Ningbo Lehui International Engineering Equipment Co., Ltd.

Why is Ningbo Lehui International Engineering Equipment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.29%

The company has been able to generate a Return on Capital Employed (avg) of 4.29% signifying low profitability per unit of total capital (equity and debt)

With ROE of 1.57%, it has a fair valuation with a 2.31 Price to Book Value

Over the past year, while the stock has generated a return of 11.77%, its profits have risen by 591.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.6

Underperformed the market in the last 1 year

The stock has generated a return of 11.77% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Industrial Manufacturing)

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

Is Ningbo Lehui International Engineering Equipment Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningbo Lehui International Engineering Equipment Co., Ltd.

3.7%

0.24

42.22%

China Shanghai Composite

13.33%

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)

13.98%

EBIT Growth (5y)

68.44%

EBIT to Interest (avg)

4.51

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.70

Tax Ratio

44.21%

Dividend Payout Ratio

228.83%

Pledged Shares

Institutional Holding

ROCE (avg)

4.29%

ROE (avg)

2.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

147

Industry P/E

Price to Book Value

2.31

EV to EBIT

176.12

EV to EBITDA

32.95

EV to Capital Employed

2.15

EV to Sales

2.22

PEG Ratio

0.25

Dividend Yield

1.62%

ROCE (Latest)

1.22%

ROE (Latest)

1.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.71% (YoY

NET PROFIT(9M)

Higher at CNY 32.17 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.22 times

NET SALES(Q)

At CNY 334.23 MM has Grown at 20.89%

-10What is not working for the Company

NET PROFIT(Q)

At CNY 7.77 MM has Fallen at -58.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 125.8

OPERATING PROFIT(Q)

Lowest at CNY 5.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.69 %

Here's what is working for Ningbo Lehui International Engineering Equipment Co., Ltd.

Net Sales

At CNY 334.23 MM has Grown at 20.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.22 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 -7.71% (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 Ningbo Lehui International Engineering Equipment Co., Ltd.

Net Profit

At CNY 7.77 MM has Fallen at -58.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 125.8

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 5.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales