Shanxi Lanhua Sci-Tech Venture Co., Ltd. (600123) 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

Shanxi Lanhua Sci-Tech Venture Co., Ltd.

Why is Shanxi Lanhua Sci-Tech Venture Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.31% and Operating profit at -186.43% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

The company has declared negative results in Dec 22 after 8 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY -6.43 MM
INTEREST(HY) At CNY 167.26 MM has Grown at 11.43%
PRE-TAX PROFIT(Q) At CNY -105.16 MM has Fallen at -388.73%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.35%, its profits have fallen by -104.8%
At the current price, the company has a high dividend yield of 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.35% 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 Miscellaneous)

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

Is Shanxi Lanhua Sci-Tech Venture Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Lanhua Sci-Tech Venture Co., Ltd.

1.3%

-1.09

26.77%

China Shanghai Composite

8.25%

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)

2.77%

EBIT Growth (5y)

-198.96%

EBIT to Interest (avg)

5.85

Debt to EBITDA (avg)

4.88

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.41

Tax Ratio

2.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.17%

ROE (avg)

11.07%

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

0.53

EV to EBIT

-24.41

EV to EBITDA

35.80

EV to Capital Employed

0.73

EV to Sales

2.29

PEG Ratio

Dividend Yield

2.76%

ROCE (Latest)

-2.99%

ROE (Latest)

-6.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -6.15% (YoY

NET SALES(Q)

Highest at CNY 2,410.33 MM

PRE-TAX PROFIT(Q)

At CNY -62.3 MM has Grown at 63.18%

NET PROFIT(Q)

At CNY -27.46 MM has Grown at 79.66%

-29What is not working for the Company

NET PROFIT(HY)

At CNY -577.9 MM has Grown at -1,405.51%

INTEREST(HY)

At CNY 256.42 MM has Grown at 65.88%

OPERATING CASH FLOW(Y)

Lowest at CNY 248.4 MM

NET SALES(HY)

At CNY 4,666.25 MM has Grown at -10.49%

ROCE(HY)

Lowest at -3.86%

DEBT-EQUITY RATIO (HY)

Highest at 74.17 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.31 times

Here's what is working for Shanxi Lanhua Sci-Tech Venture Co., Ltd.

Net Sales

Highest at CNY 2,410.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 2,410.33 MM has Grown at 18.42%

over average net sales of the previous four periods of CNY 2,035.39 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -62.3 MM has Grown at 63.18%

over average net sales of the previous four periods of CNY -169.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -27.46 MM has Grown at 79.66%

over average net sales of the previous four periods of CNY -134.98 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -6.15% (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 Shanxi Lanhua Sci-Tech Venture Co., Ltd.

Interest

At CNY 256.42 MM has Grown at 65.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 248.4 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)

Debt-Equity Ratio

Highest at 74.17 %

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

Inventory Turnover Ratio

Lowest at 7.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio