Wuxi Lihu Corp. Ltd. (300694) 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

Wuxi Lihu Corp. Ltd.

Why is Wuxi Lihu Corp. Ltd. ?

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)

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

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 has declared positive results for the last 2 consecutive quarters

NET PROFIT(HY) Higher at CNY 119.44 MM
ROCE(HY) Highest at 8.99%
DEBT-EQUITY RATIO (HY) Lowest at 2.38 %

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 -28.54%, 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

Real-Time Research Report

Verdict Report

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wuxi Lihu Corp. Ltd.

-34.6%

0.44

30.17%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.71%

EBIT Growth (5y)

-8.27%

EBIT to Interest (avg)

2.98

Debt to EBITDA (avg)

2.53

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.82

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

15.04%

Pledged Shares

Institutional Holding

ROCE (avg)

2.37%

ROE (avg)

2.83%

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

1.50

EV to EBIT

110.22

EV to EBITDA

22.44

EV to Capital Employed

1.49

EV to Sales

1.68

PEG Ratio

0.07

Dividend Yield

0.81%

ROCE (Latest)

1.35%

ROE (Latest)

8.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

19What is working for the Company

NET PROFIT(HY)

Higher at CNY 119.44 MM

ROCE(HY)

Highest at 8.99%

DEBT-EQUITY RATIO (HY)

Lowest at 2.38 %

INTEREST COVERAGE RATIO(Q)

Highest at 1,761.95

RAW MATERIAL COST(Y)

Fallen by -57.94% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.81 times

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 14.89 MM has Fallen at -60.72%

NET PROFIT(Q)

At CNY 14.87 MM has Fallen at -51.54%

NET SALES(Q)

Lowest at CNY 289.21 MM

OPERATING PROFIT(Q)

Lowest at CNY 17.41 MM

Here's what is working for Wuxi Lihu Corp. Ltd.

Interest Coverage Ratio

Highest at 1,761.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 2.38 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -57.94% (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.

Net Sales

At CNY 289.21 MM has Fallen at -17.2%

over average net sales of the previous four periods of CNY 349.28 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 14.89 MM has Fallen at -60.72%

over average net sales of the previous four periods of CNY 37.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 14.87 MM has Fallen at -51.54%

over average net sales of the previous four periods of CNY 30.68 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 289.21 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 17.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)