Suzhou Longjie Special Fiber Co. Ltd. (603332) 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

Suzhou Longjie Special Fiber Co. Ltd.

Why is Suzhou Longjie Special Fiber Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.25%

The company has been able to generate a Return on Capital Employed (avg) of 1.25% 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 7.73% and Operating profit at -23.17% over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At CNY 10.95 MM has Grown at -73.61%
NET SALES(Q) At CNY 308.68 MM has Fallen at -26.28%
OPERATING PROFIT MARGIN(Q) Lowest at -1.16 %

With ROE of 4.65%, it has a very expensive valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of 20.54%, its profits have fallen by -14.5%
At the current price, the company has a high dividend yield of 1.7

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 Garments & Apparels)

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

Is Suzhou Longjie Special Fiber Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Longjie Special Fiber Co. Ltd.

25.59%

1.07

60.86%

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)

7.73%

EBIT Growth (5y)

-23.17%

EBIT to Interest (avg)

-11.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

1.16

Tax Ratio

2.94%

Dividend Payout Ratio

82.15%

Pledged Shares

Institutional Holding

ROCE (avg)

1.25%

ROE (avg)

2.37%

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

2.25

EV to EBIT

119.84

EV to EBITDA

30.89

EV to Capital Employed

3.09

EV to Sales

1.43

PEG Ratio

Dividend Yield

1.68%

ROCE (Latest)

2.58%

ROE (Latest)

4.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 155.76 MM

-17What is not working for the Company

NET PROFIT(HY)

At CNY 10.95 MM has Grown at -73.61%

NET SALES(Q)

At CNY 308.68 MM has Fallen at -26.28%

OPERATING PROFIT MARGIN(Q)

Lowest at -1.16 %

RAW MATERIAL COST(Y)

Grown by 39.39% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,239.14 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 36.66%

OPERATING PROFIT(Q)

Lowest at CNY -3.59 MM

Here's what is working for Suzhou Longjie Special Fiber Co. Ltd.

Operating Cash Flow

Highest at CNY 155.76 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Suzhou Longjie Special Fiber Co. Ltd.

Net Profit

At CNY 10.95 MM has Grown at -73.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 308.68 MM has Fallen at -26.28%

over average net sales of the previous four periods of CNY 418.7 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -1.16 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY -3.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,239.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 36.66%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 39.39% (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

Non Operating Income

Highest at CNY 1.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income