Sichuan Development Lomon Co., Ltd. (002312) 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

Sichuan Development Lomon Co., Ltd.

Why is Sichuan Development Lomon Co., Ltd. ?

Negative results in Mar 26

NET PROFIT(HY) At CNY 88.78 MM has Grown at -51.58%
INTEREST(HY) At CNY 112.45 MM has Grown at 62.55%
INTEREST COVERAGE RATIO(Q) Lowest at 321.31

With ROE of 4.76%, it has a very expensive valuation with a 1.49 Price to Book Value

Over the past year, while the stock has generated a return of -19.51%, its profits have fallen by -10.8%
At the current price, the company has a high dividend yield of 1.8

Below par performance in long term as well as near term

Along with generating -19.51% 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 Chemicals & Petrochemicals)

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

Is Sichuan Development Lomon Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sichuan Development Lomon Co., Ltd.

-21.65%

0.67

36.94%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.79%

EBIT Growth (5y)

3.14%

EBIT to Interest (avg)

19.06

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.51

Tax Ratio

28.10%

Dividend Payout Ratio

41.04%

Pledged Shares

Institutional Holding

ROCE (avg)

7.29%

ROE (avg)

9.15%

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

1.97

EV to EBIT

35.94

EV to EBITDA

20.82

EV to Capital Employed

1.65

EV to Sales

2.23

PEG Ratio

Dividend Yield

0.89%

ROCE (Latest)

4.58%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

DIVIDEND PAYOUT RATIO(Y)

Highest at 69.83%

RAW MATERIAL COST(Y)

Fallen by -23.45% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 12.43

OPERATING PROFIT(Q)

Highest at CNY 477.96 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.9 %

-11What is not working for the Company

NET PROFIT(9M)

At CNY 236.07 MM has Grown at -25.66%

ROCE(HY)

Lowest at 4.2%

INTEREST(Q)

At CNY 55.02 MM has Grown at 11.75%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.54 times

NET SALES(Q)

Lowest at CNY 2,529.02 MM

Here's what is working for Sichuan Development Lomon Co., Ltd.

Operating Profit

Highest at CNY 477.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 18.9 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at CNY 12.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 69.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -23.45% (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 Sichuan Development Lomon Co., Ltd.

Interest

At CNY 55.02 MM has Grown at 11.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 236.07 MM has Grown at -25.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 2,529.02 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 4.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio