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

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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 0.88% and Operating profit at -1.19% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 0.43 MM has Grown at 31.57%
OPERATING CASH FLOW(Y) Lowest at CNY 222.93 MM
NET SALES(Q) Lowest at CNY 157.59 MM

With ROE of 8.81%, it has a very attractive valuation with a 1.60 Price to Book Value

Over the past year, while the stock has generated a return of -9.27%, its profits have fallen by -21.8%
At the current price, the company has a high dividend yield of 5.2

Below par performance in long term as well as near term

Along with generating -9.27% 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.

-9.55%

-0.32

28.90%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.88%

EBIT Growth (5y)

-1.19%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.35

Tax Ratio

9.67%

Dividend Payout Ratio

100.60%

Pledged Shares

Institutional Holding

ROCE (avg)

7.73%

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

1.60

EV to EBIT

18.06

EV to EBITDA

14.06

EV to Capital Employed

1.68

EV to Sales

3.92

PEG Ratio

Dividend Yield

5.25%

ROCE (Latest)

9.32%

ROE (Latest)

8.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.51% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.78%

-21What is not working for the Company

INTEREST(HY)

At CNY 0.43 MM has Grown at 31.57%

OPERATING CASH FLOW(Y)

Lowest at CNY 222.93 MM

NET SALES(Q)

Lowest at CNY 157.59 MM

OPERATING PROFIT(Q)

Lowest at CNY 24.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.56 %

PRE-TAX PROFIT(Q)

Lowest at CNY 31.61 MM

NET PROFIT(Q)

Lowest at CNY 32.5 MM

EPS(Q)

Lowest at CNY 0.09

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

Inventory Turnover Ratio

Highest at 2.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.51% (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 0.43 MM has Grown at 31.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 222.93 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 157.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 24.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 31.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -33.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 32.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)