Sichuan Langsha Holding Ltd. (600137) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sichuan Langsha Holding Ltd.

Why is Sichuan Langsha Holding Ltd. ?

Poor Management Efficiency with a low ROCE of 6.09%

The company has been able to generate a Return on Capital Employed (avg) of 6.09% 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 3.26% and Operating profit at 24.49% over the last 5 years

Flat results in Mar 25

NET SALES(9M) At CNY 293.99 MM has Grown at -8.89%
OPERATING PROFIT(Q) Lowest at CNY 0.99 MM
OPERATING PROFIT MARGIN(Q) Lowest at 1.54 %

With ROE of 4.75%, it has a very expensive valuation with a 3.32 Price to Book Value

Over the past year, while the stock has generated a return of 19.18%, its profits have risen by 1.7% ; the PEG ratio of the company is 40.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sichuan Langsha Holding Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sichuan Langsha Holding Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Langsha Holding Ltd.

-100.0%

1.16

44.77%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.26%

EBIT Growth (5y)

24.49%

EBIT to Interest (avg)

13.48

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

0.64

Tax Ratio

11.99%

Dividend Payout Ratio

77.27%

Pledged Shares

Institutional Holding

ROCE (avg)

6.09%

ROE (avg)

3.95%

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

3.32

EV to EBIT

73.92

EV to EBITDA

56.52

EV to Capital Employed

10.92

EV to Sales

3.69

PEG Ratio

40.51

Dividend Yield

1.02%

ROCE (Latest)

14.77%

ROE (Latest)

4.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -27.79% (YoY

CASH AND EQV(HY)

Highest at CNY 910.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at -72.49 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.02%

DEBTORS TURNOVER RATIO(HY)

Highest at 10.08%

PRE-TAX PROFIT(Q)

At CNY 10.63 MM has Grown at 101.62%

NET PROFIT(Q)

At CNY 9.31 MM has Grown at 96.33%

EPS(Q)

Highest at CNY 0.1

-9What is not working for the Company

NET SALES(9M)

At CNY 293.99 MM has Grown at -8.89%

OPERATING PROFIT(Q)

Lowest at CNY 0.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.54 %

Here's what is working for Sichuan Langsha Holding Ltd.

Pre-Tax Profit

Highest at CNY 10.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 10.63 MM has Grown at 101.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 9.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 9.31 MM has Grown at 96.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 910.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -72.49 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.02%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.08%

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 -27.79% (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 Langsha Holding Ltd.

Net Sales

Lowest at CNY 64.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 0.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales