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 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 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.

19.26%

-0.84

39.26%

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)

1.21%

EBIT Growth (5y)

-20.37%

EBIT to Interest (avg)

13.15

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.75

Tax Ratio

36.77%

Dividend Payout Ratio

50.07%

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

0.91

EV to EBIT

17.93

EV to EBITDA

6.92

EV to Capital Employed

0.89

EV to Sales

1.15

PEG Ratio

Dividend Yield

2.90%

ROCE (Latest)

4.95%

ROE (Latest)

2.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 24.32 times

-26What is not working for the Company

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%

NET PROFIT(Q)

At CNY 222.7 MM has Fallen at -43.31%

RAW MATERIAL COST(Y)

Grown by 16.44% (YoY

NET SALES(Q)

At CNY 7,030.68 MM has Fallen at -10.1%

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

Inventory Turnover Ratio

Highest at 24.32 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

Here's what is not working for Shanxi Lu'An Environmental Energy Development Co., Ltd.

Interest

At CNY 172.48 MM has Grown at 446.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 230.38 MM has Fallen at -52.47%

over average net sales of the previous four periods of CNY 484.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 222.7 MM has Fallen at -43.31%

over average net sales of the previous four periods of CNY 392.84 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 7,030.68 MM has Fallen at -10.1%

over average net sales of the previous four periods of CNY 7,820.37 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 16.44% (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