SZSE:002601

Stock Analysis Report

Lomon Billions Group

Executive Summary

Lomon Billions Group Co., Ltd manufactures and sells titanium dioxide pigments worldwide.


Snowflake Analysis

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Lomon Billions Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002601's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.6%

2601

0.3%

CN Chemicals

2.3%

CN Market


1 Year Return

-12.6%

2601

-18.6%

CN Chemicals

-8.9%

CN Market

Return vs Industry: 002601 exceeded the CN Chemicals industry which returned -14% over the past year.

Return vs Market: 002601 underperformed the CN Market which returned -4.5% over the past year.


Shareholder returns

2601IndustryMarket
7 Day7.6%0.3%2.3%
30 Day-7.9%-8.8%-6.7%
90 Day-6.6%-9.9%-6.1%
1 Year-7.7%-12.6%-17.1%-18.6%-7.4%-8.9%
3 Year1.8%-14.8%-28.1%-30.7%-11.9%-15.5%
5 Year80.3%50.1%-27.6%-30.8%-19.5%-24.4%

Price Volatility Vs. Market

How volatile is Lomon Billions Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lomon Billions Group undervalued compared to its fair value and its price relative to the market?

11.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 002601 (CN¥14.38) is trading above our estimate of fair value (CN¥10.27)

Significantly Below Fair Value: 002601 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002601 is good value based on its PE Ratio (11.1x) compared to the Chemicals industry average (27.8x).

PE vs Market: 002601 is good value based on its PE Ratio (11.1x) compared to the CN market (32.8x).


Price to Earnings Growth Ratio

PEG Ratio: 002601 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 002601 is good value based on its PB Ratio (2.1x) compared to the CN Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Lomon Billions Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002601's forecast earnings growth (16.4% per year) is above the savings rate (3.2%).

Earnings vs Market: 002601's earnings (16.4% per year) are forecast to grow slower than the CN market (21% per year).

High Growth Earnings: 002601's earnings are forecast to grow, but not significantly.

Revenue vs Market: 002601's revenue (15.6% per year) is forecast to grow slower than the CN market (15.8% per year).

High Growth Revenue: 002601's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002601's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has Lomon Billions Group performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002601 has high quality earnings.

Growing Profit Margin: 002601's current net profit margins (22.8%) are higher than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: 002601's earnings have grown significantly by 48.7% per year over the past 5 years.

Accelerating Growth: 002601's earnings growth over the past year (13.5%) is below its 5-year average (48.7% per year).

Earnings vs Industry: 002601 earnings growth over the past year (13.5%) exceeded the Chemicals industry 1.3%.


Return on Equity

High ROE: 002601's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is Lomon Billions Group's financial position?


Financial Position Analysis

Short Term Liabilities: 002601's short term assets (CN¥7.8B) do not cover its short term liabilities (CN¥8.4B).

Long Term Liabilities: 002601's short term assets (CN¥7.8B) exceed its long term liabilities (CN¥3.5B).


Debt to Equity History and Analysis

Debt Level: 002601's debt to equity ratio (40.7%) is considered high.

Reducing Debt: 002601's debt to equity ratio has reduced from 60% to 40.7% over the past 5 years.

Debt Coverage: 002601's debt is well covered by operating cash flow (35%).

Interest Coverage: 002601's interest payments on its debt are well covered by EBIT (56.3x coverage).


Balance Sheet

Inventory Level: 002601 has a high level of physical assets or inventory.

Debt Coverage by Assets: 002601's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Lomon Billions Group's current dividend yield, its reliability and sustainability?

5.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002601's dividend (5.22%) is higher than the bottom 25% of dividend payers in the CN market (0.45%).

High Dividend: 002601's dividend (5.22%) is in the top 25% of dividend payers in the CN market (2%)


Stability and Growth of Payments

Stable Dividend: 002601 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 002601's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.1%), 002601's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 002601's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

CN¥323k

CEO Compensation


CEO

Ben Liu He (51yo)

no data

Tenure

CN¥322,600

Compensation

Ben Liu He serves as General Manager of Henan Billions Chemicals Co., Ltd. Ben Liu He served as Deputy General Manager of Henan Billions Chemicals Co., Ltd. from 2005 to January 2015. Ben Liu He holds Mast ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lomon Billions Group Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lomon Billions Group Co., Ltd
  • Ticker: 2601
  • Exchange: SZSE
  • Founded:
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CN¥29.220b
  • Shares outstanding: 2.03b
  • Website: https://www.lomonbillions.global

Number of Employees


Location

  • Lomon Billions Group Co., Ltd
  • Zhongzhan District
  • Jiaozuo
  • Henan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2601SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYJul 2011
2601XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYJul 2011

Biography

Lomon Billions Group Co., Ltd manufactures and sells titanium dioxide pigments worldwide. It offers titanium dioxide, zirconium, iron oxide pigment, ferrous sulphate monohydrate, sulphuric acid, and ilmenite and slag products. The company offers its products under the LOMON and BILLIONS brand names. The company was formerly known as Henan Billions Chemicals Co., Ltd. and changed its name to Lomon Billions Group Co., Ltd in February 2017. Lomon Billions Group Co., Ltd is headquartered in Jiaozuo, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 17:07
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.