China Ludao Technology Co. Ltd. : Relatively poor pick? Maybe.

China Ludao Technology Co. Ltd moves from NEUTRAL to OVERVALUED

It has a Fundamental Analysis Score of 57 and a Capital Cube Implied Price of 1.05 HKD

Relative Valuation

China Ludao Technology Co. Ltd.’s price of HKD 1.18 is greater than CapitalCube’s implied price of HKD 1.05. At this level, CapitalCube believes that China Ludao Technology Co. Ltd. is overvalued. Over the last 52 week period, the stock has fluctuated between HKD 0.93 and HKD 1.44.

Relative Valuation

Company Overview

  • Relative under performance over the last year and the last month suggest a lagging position.
  • China Ludao Technology Co. Ltd. currently trades at a higher Price/Book ratio (2.02) than its peer median (1.17).
  • 2023-HK’s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • 2023-HK has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
  • 2023-HK’s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s median gross margin and relatively high pre-tax margins suggest non-differentiated product portfolio but with tight cost control relative to peers.
  • 2023-HK’s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful for an analysis between historical growth (using annualized three-year revenue growth) and investor growth expectations (as suggested by P/E or Price/EBITDA) .
  • The company’s level of capital investment seems appropriate to support the company’s growth.

Investment Outlook

China Ludao Technology Co. Ltd. has a fundamental score of 57 and has a relative valuation of OVERVALUED.

China Ludao Technology Co. Ltd.’s Fundamental Analysis Score is about average at 57, thus not allowing for a specific classification into the Value – Price Matrix.

Fundamentals Vs Relative Valuation

Drivers of Valuation

2023-HK’s earnings and EBITDA are both negative.

2023-HK’s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).

The company currently trades at a higher Price/Book ratio of 2.02 compared to its peer median of 1.17.

2023-HK did not have a traded price at the prior year-end.

ROE % (On Common Equity)
 

Peer Analysis

A complete list of valuation metrics is available on the company page.

Company Profile

China Ludao Technology Co. Ltd. is an investment holding company, which engages in the manufacture and sale of aerosol products. The firm produces and sells air freshener, car care, household cleaner, insecticide, and personal care products. It operates through the following geographical segments: the United States of America, Mainland China, Europe, and Others. The company was founded by Yue Rong Yu on May 25, 2012 and is headquartered in Taizhou, China.

Disclaimer

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