Shenzhen Longli Technology Co., Ltd. (300752) 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 Longli Technology Co., Ltd.

Why is Shenzhen Longli Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.39%

The company has been able to generate a Return on Capital Employed (avg) of 3.39% 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 -4.45% and Operating profit at 22.91% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY 29.81 MM has Grown at -49.34%
INTEREST(HY) At CNY 0.4 MM has Grown at 403.56%
ROCE(HY) Lowest at 3.75%

With ROE of 3.57%, it has a very expensive valuation with a 2.22 Price to Book Value

Over the past year, while the stock has generated a return of -7.31%, its profits have fallen by -61%

Below par performance in long term as well as near term

Along with generating -7.31% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Longli Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Longli Technology Co., Ltd.

-9.16%

0.23

55.50%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.45%

EBIT Growth (5y)

22.91%

EBIT to Interest (avg)

1.32

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.91

Tax Ratio

11.46%

Dividend Payout Ratio

36.67%

Pledged Shares

Institutional Holding

ROCE (avg)

3.39%

ROE (avg)

3.35%

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

2.22

EV to EBIT

67.89

EV to EBITDA

36.47

EV to Capital Employed

2.19

EV to Sales

1.76

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

3.23%

ROE (Latest)

3.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 145.12 MM

NET SALES(9M)

At CNY 1,225.41 MM has Grown at 17.72%

INVENTORY TURNOVER RATIO(HY)

Highest at 14.66 times

-18What is not working for the Company

NET PROFIT(HY)

At CNY 29.81 MM has Grown at -49.34%

INTEREST(HY)

At CNY 0.4 MM has Grown at 403.56%

ROCE(HY)

Lowest at 3.75%

DEBT-EQUITY RATIO (HY)

Highest at 1.93 %

RAW MATERIAL COST(Y)

Grown by 10.53% (YoY

CASH AND EQV(HY)

Lowest at CNY 687.36 MM

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

Net Sales

At CNY 1,225.41 MM has Grown at 17.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 145.12 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 14.66 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 Longli Technology Co., Ltd.

Net Profit

At CNY 29.81 MM has Grown at -49.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.4 MM has Grown at 403.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 1.93 % 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

Cash and Eqv

Lowest at CNY 687.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 10.53% (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