Shanxi Lanhua (China) Buy Hold or Sell Recommendation

600123 Stock   8.82  0.30  3.29%   
Assuming the 90 days trading horizon and your bold attitude towards risk, our recommendation regarding Shanxi Lanhua Sci Tech is 'Strong Sell'. Macroaxis provides Shanxi Lanhua buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 600123 positions.
  
Check out Shanxi Lanhua 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 Shanxi and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Shanxi Lanhua Sci Tech. 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.

Execute Shanxi Lanhua Buy or Sell Advice

The Shanxi recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Shanxi Lanhua Sci Tech. Macroaxis does not own or have any residual interests in Shanxi Lanhua Sci Tech or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Shanxi Lanhua's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Shanxi LanhuaBuy Shanxi Lanhua
Strong Sell

Market Performance

OKDetails

Volatility

Somewhat reliableDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Shanxi Lanhua Sci Tech has a Mean Deviation of 1.96, Semi Deviation of 2.49, Standard Deviation of 2.76, Variance of 7.63, Downside Variance of 7.14 and Semi Variance of 6.18
We provide advice to complement the current expert consensus on Shanxi Lanhua. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Shanxi Lanhua Sci is not overpriced, please validate all Shanxi Lanhua fundamentals, including its profit margin, current valuation, shares owned by insiders, as well as the relationship between the operating margin and shares outstanding .

Shanxi Lanhua Trading Alerts and Improvement Suggestions

Shanxi Lanhua Sci is unlikely to experience financial distress in the next 2 years
About 48.0% of the company shares are owned by insiders or employees

Shanxi Lanhua Returns Distribution Density

The distribution of Shanxi Lanhua's historical returns is an attempt to chart the uncertainty of Shanxi Lanhua's future price movements. The chart of the probability distribution of Shanxi Lanhua daily returns describes the distribution of returns around its average expected value. We use Shanxi Lanhua Sci Tech price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Shanxi Lanhua returns is essential to provide solid investment advice for Shanxi Lanhua.
Mean Return
0.14
Value At Risk
-4.14
Potential Upside
4.62
Standard Deviation
2.76
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Shanxi Lanhua 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.

Shanxi Lanhua Cash Flow Accounts

201920202021202220232024 (projected)
Capital Expenditures801.0M738.1M790.0M506.2M630.8M711.6M
Net Income662.8M374.7M2.4B3.2B2.1B2.2B
Change To Inventory(86.1M)68.3M(151.8M)96.9M(91.0M)(86.4M)
Dividends Paid785.2M654.6M601.9M1.3B1.5B1.6B
Investments(2.2M)573.8K(881.4K)(15K)(381.5M)(362.4M)
Change In Cash726.0M(260.2M)829.4M2.8B(26.9M)(25.5M)
Net Borrowings1.6B191.0M(934.0M)(1.2B)(1.1B)(1.0B)
Depreciation1.0B945.6M1.1B1.3B1.3B1.1B
Change To Netincome212.1M43.4M593.8M506.5M582.5M611.6M
End Period Cash Flow1.7B1.4B2.2B5.0B5.0B2.5B
Free Cash Flow31.2M(53.7M)2.5B5.2B2.0B1.8B
Other Non Cash Items422.6M403.4M561.3M392.0M317.6M338.6M

Shanxi Lanhua 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 Shanxi Lanhua or Oil, Gas & Consumable Fuels 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 Shanxi Lanhua'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 Shanxi 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
0.15
β
Beta against Dow Jones-0.19
σ
Overall volatility
2.84
Ir
Information ratio 0.01

Shanxi Lanhua Volatility Alert

Shanxi Lanhua Sci Tech currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shanxi Lanhua'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 Shanxi Lanhua'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.

Shanxi Lanhua Fundamentals Vs Peers

Comparing Shanxi Lanhua'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 Shanxi Lanhua's direct or indirect competition across all of the common fundamentals between Shanxi Lanhua and the related equities. This way, we can detect undervalued stocks with similar characteristics as Shanxi Lanhua or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Shanxi Lanhua's fundamental indicators could also be used in its relative valuation, which is a method of valuing Shanxi Lanhua by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Shanxi Lanhua to competition
FundamentalsShanxi LanhuaPeer Average
Return On Equity0.0575-0.31
Return On Asset0.0321-0.14
Profit Margin0.08 %(1.27) %
Operating Margin0.05 %(5.51) %
Current Valuation15.97 B16.62 B
Shares Outstanding1.49 B571.82 M
Shares Owned By Insiders47.82 %10.09 %
Shares Owned By Institutions12.76 %39.21 %
Price To Book0.85 X9.51 X
Price To Sales1.12 X11.42 X
Revenue13.28 B9.43 B
Gross Profit7.52 B27.38 B
EBITDA2.94 B3.9 B
Net Income2.1 B570.98 M
Total Debt2.04 B5.32 B
Book Value Per Share10.96 X1.93 K
Cash Flow From Operations2.67 B971.22 M
Earnings Per Share0.68 X3.12 X
Target Price11.0
Number Of Employees18.35 K18.84 K
Beta0.31-0.15
Market Capitalization13.57 B19.03 B
Total Asset30.94 B29.47 B
Retained Earnings11.48 B9.33 B
Working Capital374.7 M1.48 B
Net Asset30.94 B
Last Dividend Paid0.75

Shanxi Lanhua Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Shanxi . 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 Shanxi Lanhua Buy or Sell Advice

When is the right time to buy or sell Shanxi Lanhua Sci Tech? Buying financial instruments such as Shanxi 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.

Use Investing Ideas to Build Portfolios

In addition to having Shanxi Lanhua in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Health Management
Health Management Theme
Major hospitals and healthcare providers. The Health Management theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Health Management Theme or any other thematic opportunities.
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Other Information on Investing in Shanxi Stock

Shanxi Lanhua financial ratios help investors to determine whether Shanxi 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 Shanxi with respect to the benefits of owning Shanxi Lanhua security.