Lianhe Chemical (China) Buy Hold or Sell Recommendation
| 002250 Stock | 6.00 0.18 2.91% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Lianhe Chemical Technology is 'Strong Sell'. Macroaxis provides Lianhe Chemical buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 002250 positions.
Check out Lianhe Chemical Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Lianhe and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Lianhe Chemical Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Lianhe |
Execute Lianhe Chemical Buy or Sell Advice
The Lianhe recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lianhe Chemical Technology. Macroaxis does not own or have any residual interests in Lianhe Chemical Technology or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lianhe Chemical's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Good | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Moves slightly opposite to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Lianhe Chemical Trading Alerts and Improvement Suggestions
| The company reported the revenue of 6.44 B. Net Loss for the year was (465.24 M) with profit before overhead, payroll, taxes, and interest of 2.06 B. | |
| About 38.0% of the company shares are owned by insiders or employees |
Lianhe Chemical Returns Distribution Density
The distribution of Lianhe Chemical's historical returns is an attempt to chart the uncertainty of Lianhe Chemical's future price movements. The chart of the probability distribution of Lianhe Chemical daily returns describes the distribution of returns around its average expected value. We use Lianhe Chemical Technology price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lianhe Chemical returns is essential to provide solid investment advice for Lianhe Chemical.
| Mean Return | 0.35 | Value At Risk | -4.33 | Potential Upside | 4.52 | Standard Deviation | 2.86 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lianhe Chemical historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Lianhe Chemical Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Capital Expenditures | 1.1B | 1.5B | 1.6B | 1.7B | 1.1B | 725.4M | |
| Net Income | 144.3M | 110.0M | 315.4M | 696.8M | (465.2M) | (442.0M) | |
| Dividends Paid | 132.7M | 46.0M | 122.2M | 123.0M | 264.2M | 277.4M | |
| Change To Inventory | (433.6M) | (255.7M) | (354.5M) | (670.2M) | 206.4M | 216.7M | |
| Investments | (5M) | (15M) | 72.2M | (28.0M) | (1.1B) | (1.0B) | |
| Change In Cash | (66.6M) | (372.7M) | (23.6M) | (1.7M) | 126.9M | 133.3M | |
| Net Borrowings | 271.4M | (140.2M) | 842.9M | 1.0B | 1.2B | 1.2B | |
| Depreciation | 446.5M | 480.3M | 568.9M | 594.3M | 775.3M | 515.7M | |
| Change To Netincome | 352.7M | 449.6M | 244.9M | 242.7M | 279.1M | 238.2M | |
| End Period Cash Flow | 867.0M | 494.3M | 470.7M | 468.9M | 595.9M | 537.3M | |
| Free Cash Flow | (63.1M) | (83.1M) | (907.5M) | (1.1B) | 22.3M | 23.4M | |
| Other Non Cash Items | 39.5M | 141.8M | 104.4M | 69.4M | 45.4M | 64.5M |
Lianhe Chemical Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lianhe Chemical or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lianhe Chemical's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lianhe stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.38 | |
β | Beta against Dow Jones | -0.44 | |
σ | Overall volatility | 2.93 | |
Ir | Information ratio | 0.09 |
Lianhe Chemical Volatility Alert
Lianhe Chemical Technology currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.38. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lianhe Chemical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lianhe Chemical's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Lianhe Chemical Fundamentals Vs Peers
Comparing Lianhe Chemical's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lianhe Chemical's direct or indirect competition across all of the common fundamentals between Lianhe Chemical and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lianhe Chemical or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lianhe Chemical's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lianhe Chemical by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Lianhe Chemical to competition |
| Fundamentals | Lianhe Chemical | Peer Average |
| Return On Equity | -0.0435 | -0.31 |
| Return On Asset | -0.0022 | -0.14 |
| Profit Margin | (0.06) % | (1.27) % |
| Operating Margin | 0.03 % | (5.51) % |
| Current Valuation | 8.46 B | 16.62 B |
| Shares Outstanding | 911.33 M | 571.82 M |
| Shares Owned By Insiders | 37.86 % | 10.09 % |
| Shares Owned By Institutions | 5.86 % | 39.21 % |
| Price To Book | 0.86 X | 9.51 X |
| Price To Sales | 0.95 X | 11.42 X |
| Revenue | 6.44 B | 9.43 B |
| Gross Profit | 2.06 B | 27.38 B |
| EBITDA | 844.19 M | 3.9 B |
| Net Income | (465.24 M) | 570.98 M |
| Total Debt | 804.11 M | 5.32 B |
| Book Value Per Share | 7.00 X | 1.93 K |
| Cash Flow From Operations | 1.08 B | 971.22 M |
| Earnings Per Share | (0.38) X | 3.12 X |
| Target Price | 6.7 | |
| Number Of Employees | 5.77 K | 18.84 K |
| Beta | 0.87 | -0.15 |
| Market Capitalization | 5.47 B | 19.03 B |
| Total Asset | 13.91 B | 29.47 B |
| Retained Earnings | 2.89 B | 9.33 B |
| Working Capital | 1.5 B | 1.48 B |
| Annual Yield | 0 % | |
| Net Asset | 13.91 B | |
| Last Dividend Paid | 0.02 |
Lianhe Chemical Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lianhe . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Lianhe Chemical Buy or Sell Advice
When is the right time to buy or sell Lianhe Chemical Technology? Buying financial instruments such as Lianhe Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Lianhe Stock
Lianhe Chemical financial ratios help investors to determine whether Lianhe Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Lianhe with respect to the benefits of owning Lianhe Chemical security.