Sichuan Langsha Holding Ltd.

Market Cap: Small Cap
Industry: Footwear
ISIN: CNE000000VX4

CNY

19.72

-1.43 (-6.76%)

Mar 23

SHG

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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 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 4.81% and Operating profit at 44.10% over the last 5 years

Flat results in Sep 25

With ROE of 4.75%, it has a very expensive valuation with a 3.37 Price to Book Value

Over the past year, while the stock has generated a return of 25.58%, its profits have risen by 1.7% ; the PEG ratio of the company is 41.1

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 Footwear)

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

Is Sichuan Langsha Holding Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Langsha Holding Ltd.

28.8%

1.63

40.58%

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)

4.81%

EBIT Growth (5y)

44.10%

EBIT to Interest (avg)

13.48

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

0.65

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

3.37

EV to EBIT

75.24

EV to EBITDA

57.52

EV to Capital Employed

11.11

EV to Sales

3.75

PEG Ratio

41.07

Dividend Yield

1.01%

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

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -50.28% (YoY

CASH AND EQV(HY)

Highest at CNY 903.57 MM

DEBT-EQUITY RATIO (HY)

Lowest at -72.85 %

OPERATING PROFIT MARGIN(Q)

Highest at 10.65 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Profit Margin

Highest at 10.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 903.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -72.85 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -50.28% (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