Shandong Linglong Tyre Co., Ltd. (601966) 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

Shandong Linglong Tyre Co., Ltd.

Why is Shandong Linglong Tyre Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.53% and Operating profit at -8.85% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.53% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.53% and Operating profit at -8.85% over the last 5 years

Negative results in Mar 25

NET PROFIT(HY) At CNY 358.64 MM has Grown at -58.8%
INTEREST COVERAGE RATIO(Q) Lowest at 187.27
RAW MATERIAL COST(Y) Grown by 35.98% (YoY)

With ROE of 7.20%, it has a very expensive valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of -22.72%, its profits have fallen by -7%
At the current price, the company has a high dividend yield of 2.8

Below par performance in long term as well as near term

Along with generating -22.72% 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 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 Auto Components & Equipments)

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

Is Shandong Linglong Tyre Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Linglong Tyre Co., Ltd.

-22.72%

-1.26

20.09%

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)

6.53%

EBIT Growth (5y)

-8.85%

EBIT to Interest (avg)

5.77

Debt to EBITDA (avg)

3.97

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.57

Tax Ratio

11.76%

Dividend Payout Ratio

28.90%

Pledged Shares

Institutional Holding

ROCE (avg)

5.01%

ROE (avg)

6.53%

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

0.98

EV to EBIT

27.34

EV to EBITDA

11.58

EV to Capital Employed

0.98

EV to Sales

1.52

PEG Ratio

Dividend Yield

2.82%

ROCE (Latest)

3.60%

ROE (Latest)

7.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 9,433.58 MM

-11What is not working for the Company

NET PROFIT(HY)

At CNY 358.64 MM has Grown at -58.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 187.27

RAW MATERIAL COST(Y)

Grown by 35.98% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 57.06 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.5%

OPERATING PROFIT(Q)

Lowest at CNY 156.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.76 %

Here's what is working for Shandong Linglong Tyre Co., Ltd.

Cash and Eqv

Highest at CNY 9,433.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shandong Linglong Tyre Co., Ltd.

Net Profit

At CNY 358.64 MM has Grown at -58.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 187.27

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 156.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 57.06 %

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 4.5%

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 35.98% (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