Sichuan Lutianhua Co. Ltd. By Shares (000912) 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 Lutianhua Co. Ltd. By Shares

Why is Sichuan Lutianhua Co. Ltd. By Shares ?

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)

Poor long term growth as Net Sales has grown by an annual rate of -5.66% and Operating profit at -175.54% over the last 5 years

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 387.81 MM
NET SALES(Q) At CNY 1,027.96 MM has Fallen at -31.57%
PRE-TAX PROFIT(Q) At CNY 5.09 MM has Fallen at -88.78%

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 -25.00%, its profits have fallen by -129.6%

Below par performance in long term as well as near term

Along with generating -25.00% 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 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sichuan Lutianhua Co. Ltd. By Shares

-26.33%

-0.18

40.82%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.66%

EBIT Growth (5y)

-175.54%

EBIT to Interest (avg)

5.76

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.60

Tax Ratio

24.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.00%

ROE (avg)

4.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.91

EV to EBIT

-82.95

EV to EBITDA

30.72

EV to Capital Employed

0.91

EV to Sales

1.35

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.09%

ROE (Latest)

-0.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

11What is working for the Company

NET PROFIT(HY)

Higher at CNY 28.2 MM

RAW MATERIAL COST(Y)

Fallen by -57.96% (YoY

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 387.81 MM

NET SALES(Q)

At CNY 1,027.96 MM has Fallen at -31.57%

PRE-TAX PROFIT(Q)

At CNY 5.09 MM has Fallen at -88.78%

NET PROFIT(Q)

At CNY -1.75 MM has Fallen at -104.75%

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.84 times

INTEREST(Q)

At CNY 2.03 MM has Grown at inf%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.87 times

OPERATING PROFIT(Q)

Lowest at CNY -3.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.31 %

Here's what is working for Sichuan Lutianhua Co. Ltd. By Shares

Raw Material Cost

Fallen by -57.96% (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 Lutianhua Co. Ltd. By Shares

Net Sales

At CNY 1,027.96 MM has Fallen at -31.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 5.09 MM has Fallen at -88.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -1.75 MM has Fallen at -104.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 387.81 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 2.03 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 12.84 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY -3.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio