Ningbo Ligong Environment & Energy Technology Co., Ltd. (002322) 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 Ligong Environment & Energy Technology Co., Ltd.

Why is Ningbo Ligong Environment & Energy Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.13% and Operating profit at -0.47% over the last 5 years

With a fall in Net Sales of -8.98%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 6 consecutive quarters
INTEREST(HY) At CNY 0.8 MM has Grown at 83.2%
ROCE(HY) Lowest at 7.1%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.25 times

Below par performance in long term as well as near term

Along with generating -18.10% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Ligong Environment & Energy Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ningbo Ligong Environment & Energy Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningbo Ligong Environment & Energy Technology Co., Ltd.

-6.83%

-0.93

30.02%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.13%

EBIT Growth (5y)

-0.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.38

Tax Ratio

11.99%

Dividend Payout Ratio

100.76%

Pledged Shares

Institutional Holding

ROCE (avg)

8.15%

ROE (avg)

7.23%

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

1.25

EV to EBIT

14.65

EV to EBITDA

12.08

EV to Capital Employed

1.29

EV to Sales

2.89

PEG Ratio

Dividend Yield

6.21%

ROCE (Latest)

8.84%

ROE (Latest)

7.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -11.57% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 38.74 %

NET PROFIT(Q)

Highest at CNY 97.33 MM

EPS(Q)

Highest at CNY 0.28

-5What is not working for the Company

INTEREST(9M)

At CNY 0.8 MM has Grown at 81.92%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.33 times

Here's what is working for Ningbo Ligong Environment & Energy Technology Co., Ltd.

Operating Profit Margin

Highest at 38.74 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at CNY 97.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -11.57% (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 Ligong Environment & Energy Technology Co., Ltd.

Interest

At CNY 0.8 MM has Grown at 81.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio