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
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 14.95% and Operating profit at 51.84% 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
3
With a growth in Net Sales of 58.69%, the company declared Very Positive results in Sep 25
- RAW MATERIAL COST(Y) Fallen by -2.39% (YoY)
- CASH AND EQV(HY) Highest at CNY 957.54 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 3.69 times
4
With ROE of 5.12%, it has a attractive valuation with a 1.61 Price to Book Value
- Over the past year, while the stock has generated a return of 10.00%, its profits have risen by 111.9% ; the PEG ratio of the company is 0.3
Real-Time Research ReportHow 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.
16.74%
1.23
31.61%
China Shanghai Composite
13.33%
0.90
14.74%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.95%
EBIT Growth (5y)
51.84%
EBIT to Interest (avg)
-1.41
Debt to EBITDA (avg)
2.56
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
0.48
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.18%
ROE (avg)
1.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
1.61
EV to EBIT
27.55
EV to EBITDA
10.58
EV to Capital Employed
1.47
EV to Sales
2.44
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
5.35%
ROE (Latest)
5.12%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.39% (YoY
CASH AND EQV(HY)
Highest at CNY 957.54 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.69 times
DEBTORS TURNOVER RATIO(HY)
Highest at 1.4 times
NET SALES(Q)
Highest at CNY 561.05 MM
PRE-TAX PROFIT(Q)
Highest at CNY 111.46 MM
NET PROFIT(Q)
Highest at CNY 84.6 MM
EPS(Q)
Highest at CNY 0.15
-10What is not working for the Company
INTEREST(Q)
Highest at CNY 8.14 MM
Here's what is working for Shandong Longquan Pipe Industry Co., Ltd.
Net Sales
At CNY 561.05 MM has Grown at 58.69%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Sales
Highest at CNY 561.05 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 111.46 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 111.46 MM has Grown at 78.95%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 84.6 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.15
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 957.54 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 3.69 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 1.4 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -2.39% (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.
Interest
At CNY 8.14 MM has Grown at 76.39%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest
Highest at CNY 8.14 MM
in the last five periods and Increased by 76.39% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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