Why is Wuxi Lihu Corp. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.37%
- The company has been able to generate a Return on Capital Employed (avg) of 2.37% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 3.71% and Operating profit at -8.27% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 2.83% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 3.71% and Operating profit at -8.27% over the last 5 years
4
Positive results in Mar 26
- NET PROFIT(HY) Higher at CNY 119.44 MM
- ROCE(HY) Highest at 8.99%
- DEBT-EQUITY RATIO (HY) Lowest at 2.38 %
5
With ROE of 8.60%, it has a very attractive valuation with a 1.50 Price to Book Value
- Over the past year, while the stock has generated a return of -17.93%, its profits have risen by 245% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0.8
How much should you hold?
- Overall Portfolio exposure to Wuxi Lihu Corp. Ltd. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Wuxi Lihu Corp. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Wuxi Lihu Corp. Ltd.
-13.77%
1.03
34.46%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
3.71%
EBIT Growth (5y)
-8.27%
EBIT to Interest (avg)
2.91
Debt to EBITDA (avg)
1.96
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.82
Tax Ratio
18.48%
Dividend Payout Ratio
15.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.25%
ROE (avg)
2.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.30
EV to EBIT
95.50
EV to EBITDA
19.44
EV to Capital Employed
1.29
EV to Sales
1.46
PEG Ratio
0.06
Dividend Yield
0.93%
ROCE (Latest)
1.35%
ROE (Latest)
8.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
14What is working for the Company
NET PROFIT(HY)
At CNY 27.42 MM has Grown at 99.3%
ROCE(HY)
Highest at 9.44%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -16.63% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.86 times
-10What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY 12.23 MM has Fallen at -69.39%
NET PROFIT(Q)
At CNY 12.56 MM has Fallen at -61.55%
OPERATING CASH FLOW(Y)
Lowest at CNY 22.95 MM
Here's what is working for Wuxi Lihu Corp. Ltd.
Inventory Turnover Ratio
Highest at 2.86 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -16.63% (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 Wuxi Lihu Corp. Ltd.
Pre-Tax Profit
At CNY 12.23 MM has Fallen at -69.39%
over average net sales of the previous four periods of CNY 39.96 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 12.56 MM has Fallen at -61.55%
over average net sales of the previous four periods of CNY 32.65 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 22.95 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
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