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
Flat results in Mar 26
- INTEREST(HY) At CNY 0.26 MM has Grown at 250.42%
- OPERATING PROFIT(Q) Lowest at CNY 7.1 MM
3
With ROE of 5.34%, it has a fair valuation with a 4.58 Price to Book Value
- Over the past year, while the stock has generated a return of 66.49%, its profits have risen by 14.2%
- At the current price, the company has a high dividend yield of 0.1
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 IT - Hardware)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Wuhan Ligong Guangke Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Wuhan Ligong Guangke Co., Ltd.
71.21%
1.99
59.47%
China Shanghai Composite
21.43%
1.55
13.83%
Quality key factors
Factor
Value
Sales Growth (5y)
9.47%
EBIT Growth (5y)
55.81%
EBIT to Interest (avg)
13.63
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.62
Tax Ratio
3.38%
Dividend Payout Ratio
39.97%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.78%
ROE (avg)
4.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
86
Industry P/E
Price to Book Value
4.58
EV to EBIT
109.48
EV to EBITDA
86.62
EV to Capital Employed
8.74
EV to Sales
5.56
PEG Ratio
NA
Dividend Yield
0.11%
ROCE (Latest)
7.99%
ROE (Latest)
5.34%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 127.5 MM
RAW MATERIAL COST(Y)
Fallen by -9.13% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 1.56 times
-9What is not working for the Company
INTEREST(HY)
At CNY 0.26 MM has Grown at 250.42%
OPERATING PROFIT(Q)
Lowest at CNY 7.1 MM
Here's what is working for Wuhan Ligong Guangke Co., Ltd.
Operating Cash Flow
Highest at CNY 127.5 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Highest at 1.56 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -9.13% (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 Wuhan Ligong Guangke Co., Ltd.
Interest
At CNY 0.26 MM has Grown at 250.42%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 7.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)






