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

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)

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

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%

Below par performance in long term as well as near term

Along with generating -12.47% 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 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.

-12.56%

0.22

35.48%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.15%

EBIT Growth (5y)

46.64%

EBIT to Interest (avg)

-1.41

Debt to EBITDA (avg)

2.56

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.51

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

0.86

EV to EBIT

14.95

EV to EBITDA

8.03

EV to Capital Employed

0.88

EV to Sales

1.13

PEG Ratio

6.11

Dividend Yield

ROCE (Latest)

5.88%

ROE (Latest)

3.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 347.25 MM

RAW MATERIAL COST(Y)

Fallen by -30.2% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.49 times

PRE-TAX PROFIT(Q)

At CNY -2.91 MM has Grown at 77.31%

-10What is not working for the Company

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%

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

Operating Cash Flow

Highest at CNY 347.25 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY -2.91 MM has Grown at 77.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -30.2% (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.

Net Profit

At CNY -81.85 MM has Grown at -186.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 483.72 MM has Grown at -12.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)