Wuhan Ligong Guangke Co., Ltd. (300557) 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

Wuhan Ligong Guangke Co., Ltd.

Why is Wuhan Ligong Guangke Co., Ltd. ?

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)

With a growth in Net Profit of 105.47%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 64.01 MM
ROCE(HY) Highest at 4.77%
RAW MATERIAL COST(Y) Fallen by -20.98% (YoY)

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 28.24%, its profits have risen by 27%
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 28.24% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

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.

31.87%

1.96

56.28%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.99%

EBIT Growth (5y)

25.13%

EBIT to Interest (avg)

13.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.60

Tax Ratio

3.38%

Dividend Payout Ratio

41.22%

Pledged Shares

Institutional Holding

ROCE (avg)

3.78%

ROE (avg)

4.00%

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

3.29

EV to EBIT

86.56

EV to EBITDA

60.35

EV to Capital Employed

5.69

EV to Sales

4.08

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

6.57%

ROE (Latest)

5.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 64.01 MM

ROCE(HY)

Highest at 4.77%

RAW MATERIAL COST(Y)

Fallen by -20.98% (YoY

OPERATING PROFIT(Q)

Highest at CNY 17.98 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.58 %

PRE-TAX PROFIT(Q)

Highest at CNY 19.05 MM

NET PROFIT(Q)

Highest at CNY 16.12 MM

EPS(Q)

Highest at CNY 0.13

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -47.63 %

Here's what is working for Wuhan Ligong Guangke Co., Ltd.

Net Profit

At CNY 16.12 MM has Grown at 106.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 64.01 MM

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 17.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 10.58 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 19.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 19.05 MM has Grown at 62.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 16.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -20.98% (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.

Debt-Equity Ratio

Highest at -47.63 %

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