ScoreWhy is Shandong Longquan Pipe Industry Co., Ltd. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 9.15% and Operating profit at 46.64% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 1.05% signifying low profitability per unit of shareholders funds
3
Negative results in Mar 26
- NET PROFIT(HY) At CNY -81.85 MM has Grown at -186.7%
- NET SALES(HY) At CNY 483.72 MM has Grown at -12.4%
4
With ROE of 3.69%, it has a fair valuation with a 0.86 Price to Book Value
- Over the past year, while the stock has generated a return of -17.38%, its profits have risen by 3.8% ; the PEG ratio of the company is 6.1
5
Below par performance in long term as well as near term
- Along with generating -17.38% 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 ReportHow 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 Building Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shandong Longquan Pipe Industry Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shandong Longquan Pipe Industry Co., Ltd.
-14.95%
0.16
35.73%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.15%
EBIT Growth (5y)
46.64%
EBIT to Interest (avg)
-0.14
Debt to EBITDA (avg)
2.18
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
0.51
Tax Ratio
39.30%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.36%
ROE (avg)
1.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
1.28
EV to EBIT
21.05
EV to EBITDA
11.31
EV to Capital Employed
1.24
EV to Sales
1.60
PEG Ratio
9.09
Dividend Yield
NA
ROCE (Latest)
5.88%
ROE (Latest)
3.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-28What is not working for the Company
NET SALES(Q)
At CNY 314.78 MM has Fallen at -28.4%
PRE-TAX PROFIT(Q)
At CNY 17.77 MM has Fallen at -75.41%
NET PROFIT(Q)
At CNY 11.73 MM has Fallen at -77.47%
ROCE(HY)
Lowest at 0.87%
RAW MATERIAL COST(Y)
Grown by 29.39% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.14 times
Here's what is not working for Shandong Longquan Pipe Industry Co., Ltd.
Net Sales
At CNY 314.78 MM has Fallen at -28.4%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 17.77 MM has Fallen at -75.41%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 11.73 MM has Fallen at -77.47%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 3.14 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 29.39% (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
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