Shanghai Laimu Electronics Co., Ltd. (603633) 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

Shanghai Laimu Electronics Co., Ltd.

Why is Shanghai Laimu Electronics Co., Ltd. ?

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 25.87% and Operating profit at -7.73% 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 4.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.87% and Operating profit at -7.73% over the last 5 years

With a fall in Net Sales of -6.56%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 9.03 MM
ROCE(HY) Lowest at 0.83%
DEBT-EQUITY RATIO (HY) Highest at 68.83 %

With ROE of 2.73%, it has a expensive valuation with a 2.61 Price to Book Value

Over the past year, while the stock has generated a return of -1.77%, its profits have fallen by -34.5%
At the current price, the company has a high dividend yield of 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.77% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Electronics & Appliances)

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

Is Shanghai Laimu Electronics Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Laimu Electronics Co., Ltd.

-1.02%

-0.03

43.16%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.30%

EBIT Growth (5y)

-216.59%

EBIT to Interest (avg)

3.16

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.44

Tax Ratio

5.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.49%

ROE (avg)

4.01%

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

2.00

EV to EBIT

-29.20

EV to EBITDA

127.43

EV to Capital Employed

1.56

EV to Sales

3.24

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

-5.34%

ROE (Latest)

-11.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-31What is not working for the Company

NET PROFIT(HY)

At CNY -197.06 MM has Grown at -986.25%

OPERATING CASH FLOW(Y)

Lowest at CNY 1.69 MM

ROCE(HY)

Lowest at -10.99%

DEBT-EQUITY RATIO (HY)

Highest at 83.69 %

RAW MATERIAL COST(Y)

Grown by 66.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.37 times

NET SALES(Q)

Lowest at CNY 332.44 MM

INTEREST(Q)

Highest at CNY 13.63 MM

Here's what is not working for Shanghai Laimu Electronics Co., Ltd.

Net Profit

At CNY -197.06 MM has Grown at -986.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 1.69 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 332.44 MM has Fallen at -12.5%

over average net sales of the previous four periods of CNY 379.93 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 13.63 MM has Grown at 24.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 83.69 % and Grown

In each half year 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

Net Sales

Lowest at CNY 332.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 13.63 MM

in the last five periods and Increased by 24.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 66.97% (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