Shenzhen Laibao Hi-Tech Co., Ltd. (002106) 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

Shenzhen Laibao Hi-Tech Co., Ltd.

Why is Shenzhen Laibao Hi-Tech Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.57% and Operating profit at -8.10% over the last 5 years

With a fall in Net Sales of -7.75%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 187.25 MM
INTEREST(HY) At CNY 39.97 MM has Grown at 14.44%
ROCE(HY) Lowest at 5.45%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.83% returns

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 Electronics & Appliances)

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

Is Shenzhen Laibao Hi-Tech Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Laibao Hi-Tech Co., Ltd.

-7.89%

0.09

35.54%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.57%

EBIT Growth (5y)

-8.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

1.06

Tax Ratio

2.68%

Dividend Payout Ratio

18.85%

Pledged Shares

Institutional Holding

ROCE (avg)

20.19%

ROE (avg)

8.27%

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

1.54

EV to EBIT

19.27

EV to EBITDA

11.00

EV to Capital Employed

2.53

EV to Sales

0.82

PEG Ratio

Dividend Yield

0.83%

ROCE (Latest)

13.13%

ROE (Latest)

6.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.13 times

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 187.25 MM

INTEREST(HY)

At CNY 39.97 MM has Grown at 14.44%

ROCE(HY)

Lowest at 5.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 344.94

DEBT-EQUITY RATIO (HY)

Highest at -32.29 %

OPERATING PROFIT(Q)

Lowest at CNY 69.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.48 %

PRE-TAX PROFIT(Q)

Lowest at CNY 37.96 MM

NET PROFIT(Q)

Lowest at CNY 50.4 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Shenzhen Laibao Hi-Tech Co., Ltd.

Debtors Turnover Ratio

Highest at 4.13 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 1.48% (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 Laibao Hi-Tech Co., Ltd.

Pre-Tax Profit

At CNY 37.96 MM has Fallen at -55.89%

over average net sales of the previous four periods of CNY 86.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 39.97 MM has Grown at 14.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 187.25 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)

Interest Coverage Ratio

Lowest at 344.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 69.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 37.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 50.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 50.4 MM has Fallen at -41.63%

over average net sales of the previous four periods of CNY 86.35 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -32.29 %

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