Wolong Resources Group Co., Ltd. (600173) 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

Wolong Resources Group Co., Ltd.

Why is Wolong Resources Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 43.10%

The company has been able to generate a Return on Capital Employed (avg) of 43.10% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.60% and Operating profit at -43.22% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.60% and Operating profit at -43.22% over the last 5 years

With a fall in Net Sales of -34.68%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 6 consecutive quarters
NET SALES(Q) At CNY 682.68 MM has Fallen at -34.68%
PRE-TAX PROFIT(Q) At CNY 40.51 MM has Fallen at -51.79%
NET PROFIT(Q) At CNY 3 MM has Fallen at -94.15%

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 -24.31%, its profits have fallen by -558%

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 Realty)

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

Is Wolong Resources Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wolong Resources Group Co., Ltd.

-27.21%

1.09

49.08%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.60%

EBIT Growth (5y)

-43.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

20.60%

ROE (avg)

9.71%

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

1.16

EV to EBIT

138.95

EV to EBITDA

37.45

EV to Capital Employed

1.11

EV to Sales

1.92

PEG Ratio

Dividend Yield

ROCE (Latest)

0.80%

ROE (Latest)

-5.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 736.48 MM

NET PROFIT(HY)

Higher at CNY 14.92 MM

RAW MATERIAL COST(Y)

Fallen by -130.9% (YoY

OPERATING PROFIT(Q)

Highest at CNY 78.69 MM

-32What is not working for the Company

NET SALES(Q)

At CNY 682.68 MM has Fallen at -34.68%

PRE-TAX PROFIT(Q)

At CNY 40.51 MM has Fallen at -51.79%

NET PROFIT(Q)

At CNY 3 MM has Fallen at -94.15%

ROCE(HY)

Lowest at -6.84%

DEBT-EQUITY RATIO (HY)

Highest at 58.36 %

CASH AND EQV(HY)

Lowest at CNY 907.32 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.55 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.73 times

Here's what is working for Wolong Resources Group Co., Ltd.

Operating Cash Flow

Highest at CNY 736.48 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)

Operating Profit

Highest at CNY 78.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Raw Material Cost

Fallen by -130.9% (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 Wolong Resources Group Co., Ltd.

Net Sales

At CNY 682.68 MM has Fallen at -34.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 40.51 MM has Fallen at -51.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3 MM has Fallen at -94.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 58.36 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at CNY 907.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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