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

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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 2.33 Price to Book Value

Over the past year, while the stock has generated a return of -2.47%, 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.47% 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 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.

-2.47%

0.01

45.56%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.50%

EBIT Growth (5y)

38.19%

EBIT to Interest (avg)

4.51

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.67

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

148

Industry P/E

Price to Book Value

2.33

EV to EBIT

177.68

EV to EBITDA

33.24

EV to Capital Employed

2.17

EV to Sales

2.24

PEG Ratio

0.25

Dividend Yield

1.61%

ROCE (Latest)

1.22%

ROE (Latest)

1.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 502.84 MM

PRE-TAX PROFIT(Q)

At CNY 7.66 MM has Grown at 317.19%

NET PROFIT(Q)

At CNY 8.13 MM has Grown at 2,094.06%

ROCE(HY)

Highest at 2.01%

CASH AND EQV(HY)

Highest at CNY 1,221.92 MM

DEBT-EQUITY RATIO (HY)

Lowest at 5.35 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.14%

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 113.18

OPERATING PROFIT MARGIN(Q)

Lowest at 2.95 %

RAW MATERIAL COST(Y)

Grown by 32.28% (YoY

NET SALES(Q)

Lowest at CNY 204.06 MM

OPERATING PROFIT(Q)

Lowest at CNY 6.02 MM

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

Pre-Tax Profit

At CNY 7.66 MM has Grown at 317.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.13 MM has Grown at 2,094.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 502.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,221.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 5.35 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.14%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Ningbo Lehui International Engineering Equipment Co., Ltd.

Interest Coverage Ratio

Lowest at 113.18

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 2.95 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 204.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 6.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 32.28% (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