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 hold?

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.

20.23%

0.98

41.66%

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)

-1.78%

EBIT Growth (5y)

-11.68%

EBIT to Interest (avg)

98.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.60

Tax Ratio

26.97%

Dividend Payout Ratio

192.68%

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

2.61

EV to EBIT

39.34

EV to EBITDA

22.33

EV to Capital Employed

3.40

EV to Sales

3.35

PEG Ratio

0.24

Dividend Yield

5.01%

ROCE (Latest)

8.65%

ROE (Latest)

8.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

21What is working for the Company

ROCE(HY)

Highest at 7.4%

NET PROFIT(Q)

At CNY 23.22 MM has Grown at 155.38%

RAW MATERIAL COST(Y)

Fallen by -58.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.52 times

NET SALES(Q)

At CNY 232.9 MM has Grown at 36.74%

PRE-TAX PROFIT(Q)

Highest at CNY 33.05 MM

-11What is not working for the Company

INTEREST(HY)

At CNY 0.3 MM has Grown at 439.7%

OPERATING CASH FLOW(Y)

Lowest at CNY 145.33 MM

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

Pre-Tax Profit

At CNY 33.05 MM has Grown at 181.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 23.22 MM has Grown at 155.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 232.9 MM has Grown at 36.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 33.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -58.05% (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 0.3 MM has Grown at 439.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 145.33 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)