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 70.32%, 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.
22.11%
2.01
60.52%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
9.47%
EBIT Growth (5y)
55.81%
EBIT to Interest (avg)
20.74
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.62
Tax Ratio
9.07%
Dividend Payout Ratio
39.97%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.19%
ROE (avg)
4.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
97
Industry P/E
Price to Book Value
5.17
EV to EBIT
125.24
EV to EBITDA
99.09
EV to Capital Employed
10.00
EV to Sales
6.36
PEG Ratio
NA
Dividend Yield
0.35%
ROCE (Latest)
7.99%
ROE (Latest)
5.34%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 84.67 MM
ROCE(HY)
Highest at 4.69%
CASH AND EQV(HY)
Highest at CNY 1,209.04 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 1.48 times
-7What is not working for the Company
INTEREST(9M)
At CNY 0.27 MM has Grown at 253.7%
RAW MATERIAL COST(Y)
Grown by 9.16% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -47.23 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.12 times
Here's what is working for Wuhan Ligong Guangke Co., Ltd.
Operating Cash Flow
Highest at CNY 84.67 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)
Cash and Eqv
Highest at CNY 1,209.04 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 1.48 times
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.
Interest
At CNY 0.27 MM has Grown at 253.7%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at -47.23 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 2.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 9.16% (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
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