Shenzhen Lifotronic Technology Co., Ltd. (688389) 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 Lifotronic Technology Co., Ltd.

Why is Shenzhen Lifotronic Technology Co., Ltd. ?

With a fall in Net Sales of -4.06%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 285.02 MM
NET SALES(9M) At CNY 762.86 MM has Grown at -10.64%
ROCE(HY) Lowest at 12.39%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Pharmaceuticals & Biotechnology)

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

Is Shenzhen Lifotronic Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Lifotronic Technology Co., Ltd.

-19.78%

-1.13

25.38%

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)

15.39%

EBIT Growth (5y)

13.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.50

Tax Ratio

4.81%

Dividend Payout Ratio

34.97%

Pledged Shares

Institutional Holding

ROCE (avg)

30.25%

ROE (avg)

15.82%

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

2.86

EV to EBIT

20.83

EV to EBITDA

17.69

EV to Capital Employed

4.86

EV to Sales

4.58

PEG Ratio

Dividend Yield

2.04%

ROCE (Latest)

23.32%

ROE (Latest)

14.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.56 times

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 285.02 MM

NET SALES(9M)

At CNY 762.86 MM has Grown at -10.64%

ROCE(HY)

Lowest at 12.39%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.63 times

OPERATING PROFIT(Q)

Lowest at CNY 32.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.72 %

RAW MATERIAL COST(Y)

Grown by 10.24% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -51.17 %

PRE-TAX PROFIT(Q)

Lowest at CNY 36.96 MM

NET PROFIT(Q)

Lowest at CNY 41.46 MM

EPS(Q)

Lowest at CNY 0.1

Here's what is working for Shenzhen Lifotronic Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 2.56 times

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 Lifotronic Technology Co., Ltd.

Pre-Tax Profit

At CNY 36.96 MM has Fallen at -53.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 32.57 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.72 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 41.46 MM has Fallen at -51.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 5.63 times 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

Net Sales

At CNY 762.86 MM has Grown at -10.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 285.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Lowest at CNY 36.96 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 41.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -51.17 %

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

Raw Material Cost

Grown by 10.24% (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