Shandong Longquan Pipe Industry Co., Ltd. (002671) 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 Longquan Pipe Industry Co., Ltd.

Why is Shandong Longquan Pipe Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.18%

The company has been able to generate a Return on Capital Employed (avg) of 1.18% signifying low profitability per unit of total capital (equity and debt)

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 11.11% and Operating profit at 36.29% 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 1.05% signifying low profitability per unit of shareholders funds

Positive results in Mar 25

NET PROFIT(9M) At CNY 34.36 MM has Grown at 104.14%
NET SALES(9M) At CNY 891.5 MM has Grown at 20.73%
RAW MATERIAL COST(Y) Fallen by -18.82% (YoY)

With ROE of 5.12%, it has a fair valuation with a 0.94 Price to Book Value

Over the past year, while the stock has generated a return of 11.56%, its profits have risen by 111.9% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Longquan Pipe Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Shandong Longquan Pipe Industry Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Longquan Pipe Industry Co., Ltd.

-100.0%

1.77

28.89%

China Shanghai Composite

15.19%

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)

11.11%

EBIT Growth (5y)

36.29%

EBIT to Interest (avg)

-1.41

Debt to EBITDA (avg)

2.56

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.47

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.18%

ROE (avg)

1.05%

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

0.94

EV to EBIT

17.81

EV to EBITDA

6.84

EV to Capital Employed

0.95

EV to Sales

1.58

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

5.35%

ROE (Latest)

5.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

8What is working for the Company

NET PROFIT(9M)

At CNY 34.36 MM has Grown at 104.14%

NET SALES(9M)

At CNY 891.5 MM has Grown at 20.73%

RAW MATERIAL COST(Y)

Fallen by -18.82% (YoY

CASH AND EQV(HY)

Highest at CNY 1,049.75 MM

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -12.84 MM has Fallen at -117.75%

DEBT-EQUITY RATIO (HY)

Highest at 31.58 %

OPERATING PROFIT(Q)

Lowest at CNY -8.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -5.13 %

NET PROFIT(Q)

Lowest at CNY -14.69 MM

EPS(Q)

Lowest at CNY -0.03

Here's what is working for Shandong Longquan Pipe Industry Co., Ltd.

Net Sales

At CNY 174.13 MM has Grown at 35.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,049.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -18.82% (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 Shandong Longquan Pipe Industry Co., Ltd.

Pre-Tax Profit

At CNY -12.84 MM has Fallen at -117.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -14.69 MM has Fallen at -77.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -8.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -5.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY -14.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 31.58 %

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