Shenzhen L&A Design Holding Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen L&A Design Holding Ltd.

Why is Shenzhen L&A Design Holding Ltd. ?

Poor Management Efficiency with a low ROCE of 0.49%

The company has been able to generate a Return on Capital Employed (avg) of 0.49% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -10.15% and Operating profit at -315.16% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET SALES(HY) At CNY 148.42 MM has Grown at -41.65%
NET PROFIT(HY) At CNY -163.41 MM has Grown at -67.13%
PRE-TAX PROFIT(Q) At CNY -10.61 MM has Fallen at -141.24%

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 31.94%, its profits have fallen by -33.4%

Market Beating Performance

The stock has generated a return of 31.94% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen L&A Design Holding 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 Shenzhen L&A Design Holding Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen L&A Design Holding Ltd.

11.73%

0.61

75.60%

China Shanghai Composite

12.36%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.15%

EBIT Growth (5y)

-315.16%

EBIT to Interest (avg)

-23.52

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.44

Tax Ratio

6.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.49%

ROE (avg)

0.57%

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

1.03

EV to EBIT

-1.90

EV to EBITDA

-2.22

EV to Capital Employed

1.05

EV to Sales

1.32

PEG Ratio

Dividend Yield

ROCE (Latest)

-55.46%

ROE (Latest)

-31.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 49.61 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.4%

EPS(Q)

Highest at CNY -0.16

-33What is not working for the Company

NET SALES(HY)

At CNY 148.42 MM has Grown at -41.65%

NET PROFIT(HY)

At CNY -163.41 MM has Grown at -67.13%

PRE-TAX PROFIT(Q)

At CNY -10.61 MM has Fallen at -141.24%

INTEREST(9M)

At CNY 4.66 MM has Grown at 8.4%

ROCE(HY)

Lowest at -31.19%

DEBT-EQUITY RATIO (HY)

Highest at -28.44 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.83%

RAW MATERIAL COST(Y)

Grown by 19.22% (YoY

Here's what is working for Shenzhen L&A Design Holding Ltd.

Operating Cash Flow

Highest at CNY 49.61 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

EPS

Highest at CNY -0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 9.4%

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 Shenzhen L&A Design Holding Ltd.

Net Sales

At CNY 88.08 MM has Fallen at -44.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -10.61 MM has Fallen at -141.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.55 MM has Fallen at -149.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -28.44 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 0.83% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

At CNY 4.66 MM has Grown at 8.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 19.22% (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