Shanxi Lu'An Environmental Energy Development Co., Ltd. (601699) 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 Lu'An Environmental Energy Development Co., Ltd.

Why is Shanxi Lu'An Environmental Energy Development Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.21% and Operating profit at -20.37% over the last 5 years

With a fall in Net Sales of -1%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 8 consecutive quarters
The company has declared negative results in Jun 23 after 9 consecutive negative quarters
INTEREST(HY) At CNY 172.48 MM has Grown at 446.24%
ROCE(HY) Lowest at 2.61%
PRE-TAX PROFIT(Q) At CNY 230.38 MM has Fallen at -52.47%

With ROE of 2.65%, it has a expensive valuation with a 0.91 Price to Book Value

Over the past year, while the stock has generated a return of 22.98%, its profits have fallen by -79.4%
At the current price, the company has a high dividend yield of 2.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanxi Lu'An Environmental Energy Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Shanxi Lu'An Environmental Energy Development Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Lu'An Environmental Energy Development Co., Ltd.

50.41%

-0.84

39.26%

China Shanghai Composite

21.43%

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)

-0.07%

EBIT Growth (5y)

-24.62%

EBIT to Interest (avg)

13.15

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.69

Tax Ratio

36.77%

Dividend Payout Ratio

50.16%

Pledged Shares

Institutional Holding

ROCE (avg)

32.41%

ROE (avg)

16.19%

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

1.20

EV to EBIT

33.04

EV to EBITDA

11.83

EV to Capital Employed

1.33

EV to Sales

1.33

PEG Ratio

Dividend Yield

2.21%

ROCE (Latest)

4.02%

ROE (Latest)

1.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 11,279.44 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 27.29 times

RAW MATERIAL COST(Y)

Fallen by -6.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.63 times

NET SALES(Q)

Highest at CNY 7,262.88 MM

PRE-TAX PROFIT(Q)

Highest at CNY 887.47 MM

NET PROFIT(Q)

Highest at CNY 719.25 MM

EPS(Q)

Highest at CNY 0.24

-9What is not working for the Company

NET PROFIT(9M)

At CNY 486 MM has Grown at -44.8%

NET SALES(9M)

At CNY 21,013.68 MM has Grown at -13.09%

ROCE(HY)

Lowest at 2.52%

Here's what is working for Shanxi Lu'An Environmental Energy Development Co., Ltd.

Pre-Tax Profit

At CNY 887.47 MM has Grown at 207.75%

over average net sales of the previous four periods of CNY 288.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 719.25 MM has Grown at 157.99%

over average net sales of the previous four periods of CNY 278.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 27.29 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 11,279.44 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

Highest at CNY 7,262.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 887.47 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 719.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 3.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -6.83% (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