Shenzhen Longtech Smart Control Co., 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Longtech Smart Control Co., Ltd.

Why is Shenzhen Longtech Smart Control Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.53% and Operating profit at -4.73% over the last 5 years

The company has declared negative results in Mar'2025 after 4 consecutive positive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 2,284.3
RAW MATERIAL COST(Y) Grown by 5.44% (YoY)
INTEREST(Q) Highest at CNY 1.47 MM

With ROE of 9.30%, it has a fair valuation with a 4.31 Price to Book Value

Over the past year, while the stock has generated a return of -5.44%, its profits have fallen by -20.5%

Below par performance in long term as well as near term

Along with generating -5.44% 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 hold?

Overall Portfolio exposure to Shenzhen Longtech Smart Control Co., 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 Longtech Smart Control Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Longtech Smart Control Co., Ltd.

-5.44%

0.49

47.04%

China Shanghai Composite

16.01%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.53%

EBIT Growth (5y)

-4.73%

EBIT to Interest (avg)

47.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.92

Tax Ratio

9.73%

Dividend Payout Ratio

37.52%

Pledged Shares

Institutional Holding

ROCE (avg)

35.01%

ROE (avg)

12.12%

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

4.31

EV to EBIT

50.23

EV to EBITDA

35.95

EV to Capital Employed

8.99

EV to Sales

3.34

PEG Ratio

Dividend Yield

ROCE (Latest)

17.89%

ROE (Latest)

9.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

NET SALES(Q)

Highest at CNY 418.1 MM

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,284.3

RAW MATERIAL COST(Y)

Grown by 5.44% (YoY

INTEREST(Q)

Highest at CNY 1.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.02 %

Here's what is working for Shenzhen Longtech Smart Control Co., Ltd.

Net Sales

Highest at CNY 418.1 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Shenzhen Longtech Smart Control Co., Ltd.

Interest

At CNY 1.47 MM has Grown at 69.4%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,284.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.47 MM

in the last five periods and Increased by 69.4% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 8.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 5.44% (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