Zhejiang Lianxiang Smart Home Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Lianxiang Smart Home Co., Ltd.

Why is Zhejiang Lianxiang Smart Home Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.98%

The company has been able to generate a Return on Capital Employed (avg) of 1.98% 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 -2.58% and Operating profit at -21.81% 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 2.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.58% and Operating profit at -21.81% over the last 5 years

INTEREST(HY) At CNY 0.29 MM has Grown at 886.21%
OPERATING CASH FLOW(Y) Lowest at CNY -5.94 MM
DEBT-EQUITY RATIO (HY) Highest at -20.07 %

With ROE of 4.49%, it has a very expensive valuation with a 1.31 Price to Book Value

Over the past year, while the stock has generated a return of 20.27%, its profits have risen by 185.5% ; the PEG ratio of the company is 0.2

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 Construction)

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

Is Zhejiang Lianxiang Smart Home Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Lianxiang Smart Home Co., Ltd.

19.52%

2.70

45.77%

China Shanghai Composite

15.28%

1.09

14.56%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.58%

EBIT Growth (5y)

-21.81%

EBIT to Interest (avg)

-0.31

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.28

Tax Ratio

10.72%

Dividend Payout Ratio

90.99%

Pledged Shares

Institutional Holding

ROCE (avg)

1.98%

ROE (avg)

2.01%

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

1.31

EV to EBIT

22.72

EV to EBITDA

12.90

EV to Capital Employed

1.39

EV to Sales

2.70

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

6.14%

ROE (Latest)

4.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

32What is working for the Company

NET SALES(Q)

At CNY 40.56 MM has Grown at 52.85%

PRE-TAX PROFIT(Q)

At CNY 1.67 MM has Grown at 158.02%

NET PROFIT(Q)

At CNY 0.29 MM has Grown at 108.43%

RAW MATERIAL COST(Y)

Fallen by -42.68% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.08%

-15What is not working for the Company

INTEREST(HY)

At CNY 0.29 MM has Grown at 886.21%

OPERATING CASH FLOW(Y)

Lowest at CNY -5.94 MM

DEBT-EQUITY RATIO (HY)

Highest at -20.07 %

Here's what is working for Zhejiang Lianxiang Smart Home Co., Ltd.

Net Sales

At CNY 40.56 MM has Grown at 52.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 1.67 MM has Grown at 158.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.29 MM has Grown at 108.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.08%

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 -42.68% (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 Zhejiang Lianxiang Smart Home Co., Ltd.

Interest

At CNY 0.29 MM has Grown at 886.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -5.94 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)

Debt-Equity Ratio

Highest at -20.07 % 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