Shanghai Lianming Machinery Co., Ltd. (603006) 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

Shanghai Lianming Machinery Co., Ltd.

Why is Shanghai Lianming Machinery Co., Ltd. ?

With ROE of 3.61%, it has a very attractive valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of 9.42%, its profits have fallen by -40.2%
At the current price, the company has a high dividend yield of 6.4

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Shanghai Lianming Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Shanghai Lianming Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Lianming Machinery Co., Ltd.

-100.0%

0.78

44.15%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.83%

EBIT Growth (5y)

-19.94%

EBIT to Interest (avg)

98.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.65

Tax Ratio

26.97%

Dividend Payout Ratio

153.29%

Pledged Shares

Institutional Holding

ROCE (avg)

13.33%

ROE (avg)

8.80%

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

1.10

EV to EBIT

20.71

EV to EBITDA

7.39

EV to Capital Employed

1.17

EV to Sales

1.22

PEG Ratio

Dividend Yield

6.38%

ROCE (Latest)

5.65%

ROE (Latest)

3.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,286.06 MM

DEBT-EQUITY RATIO (HY)

Lowest at -41.87 %

-26What is not working for the Company

NET SALES(HY)

At CNY 421.44 MM has Grown at -19.44%

INTEREST(HY)

At CNY 0.06 MM has Grown at 47.48%

OPERATING CASH FLOW(Y)

Lowest at CNY 182.16 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 30,489.6

RAW MATERIAL COST(Y)

Grown by 10.77% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.98%

OPERATING PROFIT(Q)

Lowest at CNY 7.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.48 %

NET PROFIT(Q)

Fallen at -34.08%

Here's what is working for Shanghai Lianming Machinery Co., Ltd.

Cash and Eqv

Highest at CNY 1,286.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -41.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Shanghai Lianming Machinery Co., Ltd.

Net Sales

At CNY 421.44 MM has Grown at -19.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 0.06 MM has Grown at 47.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 182.16 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)

Interest Coverage Ratio

Lowest at 30,489.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 7.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -34.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.98%

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 10.77% (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