Wuxi Longsheng Technology Co., Ltd. (300680) 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 Longsheng Technology Co., Ltd.

Why is Wuxi Longsheng Technology Co., Ltd. ?

Negative results in Sep 25

INTEREST(HY) At CNY 15.46 MM has Grown at 107.43%
DEBT-EQUITY RATIO (HY) Highest at 47.97 %
RAW MATERIAL COST(Y) Grown by 7.48% (YoY)

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.56% returns

Real-Time Research Report

Verdict Report

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 Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Wuxi Longsheng Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Longsheng Technology Co., Ltd.

-8.5%

1.64

59.92%

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)

38.63%

EBIT Growth (5y)

32.02%

EBIT to Interest (avg)

6.90

Debt to EBITDA (avg)

2.47

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.64

Tax Ratio

11.21%

Dividend Payout Ratio

20.35%

Pledged Shares

Institutional Holding

ROCE (avg)

6.59%

ROE (avg)

8.73%

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

7.69

EV to EBIT

72.67

EV to EBITDA

42.78

EV to Capital Employed

5.39

EV to Sales

6.15

PEG Ratio

4.99

Dividend Yield

0.31%

ROCE (Latest)

7.42%

ROE (Latest)

10.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 419.45 MM

ROCE(HY)

Highest at 14.71%

CASH AND EQV(HY)

Highest at CNY 1,394.37 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.07 times

EPS(Q)

Highest at CNY 0.47

-22What is not working for the Company

INTEREST(HY)

At CNY 15.46 MM has Grown at 107.43%

DEBT-EQUITY RATIO (HY)

Highest at 47.97 %

RAW MATERIAL COST(Y)

Grown by 7.48% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 38.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.53 %

PRE-TAX PROFIT(Q)

Lowest at CNY 36.19 MM

NET PROFIT(Q)

Lowest at CNY 28.82 MM

Here's what is working for Wuxi Longsheng Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 419.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

EPS

Highest at CNY 0.47

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,394.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wuxi Longsheng Technology Co., Ltd.

Interest

At CNY 15.46 MM has Grown at 107.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 28.82 MM has Fallen at -38.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 47.97 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 38.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 36.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -30.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 28.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 7.48% (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