Why is Sichuan Lutianhua Co. Ltd. By Shares ?
1
Poor Management Efficiency with a low ROCE of 5.00%
- The company has been able to generate a Return on Capital Employed (avg) of 5.00% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -3.85% and Operating profit at -187.50% over the last 5 years
3
With a fall in Net Sales of -45.05%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 6 consecutive quarters
- NET PROFIT(9M) At CNY -20.76 MM has Grown at -170.38%
- OPERATING CASH FLOW(Y) Lowest at CNY 451.84 MM
- NET SALES(9M) At CNY 3,671.18 MM has Grown at -8.81%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 9.23%, its profits have fallen by -109.1%
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sichuan Lutianhua Co. Ltd. By Shares for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Sichuan Lutianhua Co. Ltd. By Shares
-16.63%
0.87
33.76%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.85%
EBIT Growth (5y)
-187.50%
EBIT to Interest (avg)
5.76
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
0.68
Tax Ratio
24.81%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.00%
ROE (avg)
4.77%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.02
EV to EBIT
-41.94
EV to EBITDA
30.15
EV to Capital Employed
1.02
EV to Sales
1.24
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-2.44%
ROE (Latest)
-0.18%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
NET PROFIT(HY)
At CNY -12.01 MM has Grown at 77.24%
-12What is not working for the Company
NET PROFIT(9M)
At CNY -20.76 MM has Grown at -170.38%
OPERATING CASH FLOW(Y)
Lowest at CNY 451.84 MM
NET SALES(9M)
At CNY 3,671.18 MM has Grown at -8.81%
RAW MATERIAL COST(Y)
Grown by 25.39% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 7.22%
DEBTORS TURNOVER RATIO(HY)
Lowest at 22.66%
Here's what is working for Sichuan Lutianhua Co. Ltd. By Shares
Net Profit
At CNY -12.01 MM has Grown at 77.24%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Here's what is not working for Sichuan Lutianhua Co. Ltd. By Shares
Net Sales
At CNY 3,671.18 MM has Grown at -8.81%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 451.84 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Inventory Turnover Ratio
Lowest at 7.22%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 22.66%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 25.39% (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






