Why is Zhejiang Linuo Flow Control Technology Co., Ltd. ?
1
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 16.05% and Operating profit at -146.79% 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 8.28% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 16.05% and Operating profit at -146.79% over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- NET SALES(HY) At CNY 382.16 MM has Grown at -21.94%
- NET PROFIT(HY) At CNY 0.8 MM has Grown at -97.64%
- INTEREST(HY) At CNY 1.51 MM has Grown at 297.97%
4
With ROE of -0.19%, it has a risky valuation with a 0.49 Price to Book Value
- Over the past year, while the stock has generated a return of 18.39%, its profits have fallen by -102.5%
- At the current price, the company has a high dividend yield of 4.3
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhejiang Linuo Flow Control Technology Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang Linuo Flow Control Technology Co., Ltd.
9.15%
1.82
27.99%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
16.05%
EBIT Growth (5y)
-146.79%
EBIT to Interest (avg)
42.73
Debt to EBITDA (avg)
1.31
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
0.85
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
112.28%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.13%
ROE (avg)
8.28%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.49
EV to EBIT
-503.33
EV to EBITDA
35.82
EV to Capital Employed
0.61
EV to Sales
0.91
PEG Ratio
NA
Dividend Yield
4.29%
ROCE (Latest)
-0.12%
ROE (Latest)
-0.19%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
No Trend
Technical Movement
2What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 30.26 MM
-31What is not working for the Company
NET SALES(HY)
At CNY 382.16 MM has Grown at -21.94%
NET PROFIT(HY)
At CNY 0.8 MM has Grown at -97.64%
INTEREST(HY)
At CNY 1.51 MM has Grown at 297.97%
ROCE(HY)
Lowest at 1.78%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.2%
RAW MATERIAL COST(Y)
Grown by 5.34% (YoY
Here's what is working for Zhejiang Linuo Flow Control Technology Co., Ltd.
Operating Cash Flow
Highest at CNY 30.26 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Here's what is not working for Zhejiang Linuo Flow Control Technology Co., Ltd.
Net Profit
At CNY 0.8 MM has Grown at -97.64%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 1.51 MM has Grown at 297.97%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 1.2% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at CNY 162.86 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Raw Material Cost
Grown by 5.34% (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






