Shandong Longertek Technology Co., Ltd. (300594) 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

Shandong Longertek Technology Co., Ltd.

Why is Shandong Longertek Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.82%

The company has been able to generate a Return on Capital Employed (avg) of 1.82% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.23% and Operating profit at -55.55% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.23% and Operating profit at -55.55% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 8.56 MM has Grown at 18.47%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.53 times
OPERATING PROFIT(Q) Lowest at CNY -7.87 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -20.26%, its profits have risen by 75.3%

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 Automobiles)

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

Is Shandong Longertek Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Longertek Technology Co., Ltd.

-16.62%

-0.03

57.37%

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)

6.23%

EBIT Growth (5y)

-55.55%

EBIT to Interest (avg)

-2.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.67

Tax Ratio

8.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.03%

ROE (avg)

1.80%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.62

EV to EBIT

1106.65

EV to EBITDA

45.77

EV to Capital Employed

1.52

EV to Sales

1.75

PEG Ratio

Dividend Yield

ROCE (Latest)

0.14%

ROE (Latest)

-2.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 164.35 MM

NET PROFIT(9M)

Higher at CNY -46.11 MM

-26What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.86 times

NET SALES(Q)

At CNY 197.37 MM has Fallen at -16.86%

RAW MATERIAL COST(Y)

Grown by 25.37% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -24.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -12.37 %

PRE-TAX PROFIT(Q)

Lowest at CNY -35.73 MM

NET PROFIT(Q)

Lowest at CNY -32.45 MM

EPS(Q)

Lowest at CNY -0.36

Here's what is working for Shandong Longertek Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 164.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Depreciation

At CNY 9.07 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Shandong Longertek Technology Co., Ltd.

Pre-Tax Profit

At CNY -35.73 MM has Fallen at -348.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -32.45 MM has Fallen at -318.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 197.37 MM has Fallen at -16.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.86 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY -24.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -12.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -35.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -32.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.36

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 25.37% (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