Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. (002428) 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

Yunnan Lincang Xinyuan Germanium Industry Co., Ltd.

Why is Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.14%

The company has been able to generate a Return on Capital Employed (avg) of 1.14% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 12.81% and Operating profit at 34.70% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.85% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -6.94%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 3 consecutive negative quarters
INTEREST(HY) At CNY 31.9 MM has Grown at 78.93%
OPERATING CASH FLOW(Y) Lowest at CNY -197.35 MM
INTEREST COVERAGE RATIO(Q) Lowest at 19.4

With ROE of 5.58%, it has a expensive valuation with a 12.31 Price to Book Value

Over the past year, while the stock has generated a return of 128.88%, its profits have risen by 1298.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

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 Minerals & Mining)

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

Is Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yunnan Lincang Xinyuan Germanium Industry Co., Ltd.

122.55%

7.03

59.17%

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)

12.81%

EBIT Growth (5y)

34.70%

EBIT to Interest (avg)

-0.39

Debt to EBITDA (avg)

3.85

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.32

Tax Ratio

13.35%

Dividend Payout Ratio

36.90%

Pledged Shares

Institutional Holding

ROCE (avg)

1.14%

ROE (avg)

1.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

221

Industry P/E

Price to Book Value

12.31

EV to EBIT

204.19

EV to EBITDA

85.09

EV to Capital Employed

9.97

EV to Sales

19.58

PEG Ratio

0.17

Dividend Yield

0.11%

ROCE (Latest)

4.88%

ROE (Latest)

5.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

NET SALES(HY)

At CNY 558.73 MM has Grown at 50.15%

CASH AND EQV(HY)

Highest at CNY 1,072.44 MM

-35What is not working for the Company

INTEREST(HY)

At CNY 31.9 MM has Grown at 78.93%

OPERATING CASH FLOW(Y)

Lowest at CNY -197.35 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 19.4

OPERATING PROFIT(Q)

Lowest at CNY 2.94 MM

RAW MATERIAL COST(Y)

Grown by 68.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 73.86 %

OPERATING PROFIT MARGIN(Q)

Lowest at 1.09 %

PRE-TAX PROFIT(Q)

Lowest at CNY -6.37 MM

NET PROFIT(Q)

Lowest at CNY -4 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Yunnan Lincang Xinyuan Germanium Industry Co., Ltd.

Net Sales

At CNY 558.73 MM has Grown at 50.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,072.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Yunnan Lincang Xinyuan Germanium Industry Co., Ltd.

Interest

At CNY 31.9 MM has Grown at 78.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 19.4 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY -6.37 MM has Fallen at -126.87%

over average net sales of the previous four periods of CNY 23.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4 MM has Fallen at -118.94%

over average net sales of the previous four periods of CNY 21.12 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -197.35 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 2.94 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -6.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 73.86 %

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

Raw Material Cost

Grown by 68.27% (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