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

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 2.72 Price to Book Value

Over the past year, while the stock has generated a return of 23.22%, its profits have fallen by -40.2%
At the current price, the company has a high dividend yield of 2.6

Consistent Returns over the last 3 years

Along with generating 23.22% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

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.

4.51%

0.98

41.66%

China Shanghai Composite

13.33%

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)

-1.74%

EBIT Growth (5y)

-14.72%

EBIT to Interest (avg)

98.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.64

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

2.72

EV to EBIT

69.51

EV to EBITDA

24.80

EV to Capital Employed

3.93

EV to Sales

4.09

PEG Ratio

Dividend Yield

2.58%

ROCE (Latest)

5.65%

ROE (Latest)

3.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 256.98 MM

RAW MATERIAL COST(Y)

Fallen by -29.03% (YoY

CASH AND EQV(HY)

Highest at CNY 1,233.16 MM

NET SALES(Q)

At CNY 220.38 MM has Grown at 38.61%

PRE-TAX PROFIT(Q)

Highest at CNY 30.38 MM

NET PROFIT(Q)

Highest at CNY 26.9 MM

-7What is not working for the Company

INTEREST(9M)

At CNY 0.06 MM has Grown at 71.23%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.41 times

OPERATING PROFIT(Q)

Lowest at CNY 22.18 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.06 %

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

Pre-Tax Profit

At CNY 30.38 MM has Grown at 288.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.9 MM has Grown at 216.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 256.98 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 220.38 MM has Grown at 38.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 30.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 26.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,233.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -29.03% (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 Shanghai Lianming Machinery Co., Ltd.

Interest

At CNY 0.06 MM has Grown at 71.23%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 22.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio