Why is Wuhan Ligong Guangke Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.78%
- The company has been able to generate a Return on Capital Employed (avg) of 3.78% signifying low profitability per unit of total capital (equity and debt)
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 67.37 MM
- ROCE(HY) Highest at 3.68%
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
3
With ROE of 5.03%, it has a fair valuation with a 3.29 Price to Book Value
- Over the past year, while the stock has generated a return of 17.41%, its profits have risen by 27%
- At the current price, the company has a high dividend yield of 0.2
How much should you hold?
- Overall Portfolio exposure to Wuhan Ligong Guangke Co., Ltd. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Wuhan Ligong Guangke Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Wuhan Ligong Guangke Co., Ltd.
24.63%
1.57
52.65%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
19.10%
EBIT Growth (5y)
99.45%
EBIT to Interest (avg)
13.63
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.59
Tax Ratio
3.38%
Dividend Payout Ratio
41.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.78%
ROE (avg)
4.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
65
Industry P/E
Price to Book Value
3.29
EV to EBIT
86.52
EV to EBITDA
60.33
EV to Capital Employed
5.68
EV to Sales
4.08
PEG Ratio
NA
Dividend Yield
0.16%
ROCE (Latest)
6.57%
ROE (Latest)
5.03%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 67.37 MM
ROCE(HY)
Highest at 3.68%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
CASH AND EQV(HY)
Highest at CNY 1,305.19 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -61.22 %
DEBTORS TURNOVER RATIO(HY)
Highest at 1.39%
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 10.04% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 5.78 MM
PRE-TAX PROFIT(Q)
Lowest at CNY 7.43 MM
Here's what is working for Wuhan Ligong Guangke Co., Ltd.
Operating Cash Flow
Highest at CNY 67.37 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Cash and Eqv
Highest at CNY 1,305.19 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -61.22 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 1.39%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Wuhan Ligong Guangke Co., Ltd.
Operating Profit
Lowest at CNY 5.78 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Pre-Tax Profit
Lowest at CNY 7.43 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Raw Material Cost
Grown by 10.04% (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






