Why is Shenzhen L&A Design Holding Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of -7.40% and Operating profit at -293.05% over the last 5 years
3
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 -27.35%, its profits have risen by 39.6%
4
Below par performance in long term as well as near term
- Along with generating -27.35% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Shenzhen L&A Design Holding Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shenzhen L&A Design Holding Ltd.
-15.34%
-0.55
52.68%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-7.40%
EBIT Growth (5y)
-293.05%
EBIT to Interest (avg)
-25.54
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
0.48
Tax Ratio
17.64%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.39%
ROE (avg)
0.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.11
EV to EBIT
-13.48
EV to EBITDA
-15.87
EV to Capital Employed
4.36
EV to Sales
3.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-32.31%
ROE (Latest)
-22.51%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
9What is working for the Company
NET PROFIT(HY)
Higher at CNY -12.38 MM
ROCE(HY)
Highest at -19.35%
RAW MATERIAL COST(Y)
Fallen by -24.67% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 11.37 times
-3What is not working for the Company
CASH AND EQV(HY)
Lowest at CNY 605.44 MM
Here's what is working for Shenzhen L&A Design Holding Ltd.
Net Profit
Higher at CNY -12.38 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Net Profit
At CNY -12.38 MM has Grown at 45.24%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 11.37 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -24.67% (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 Shenzhen L&A Design Holding Ltd.
Cash and Eqv
Lowest at CNY 605.44 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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