Julong Holding Ltd (NASDAQ: JLHL)

Sector: Industrials Industry: Building Products & Equipment CIK: 0002007846
Market Cap 103.79 Mn
P/B 10.59
P/E 28.26
P/S 2.93
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.44 Mn
Debt/Equity (Qtr) 0.15
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About

Investment thesis

Bull case

  • Healthy cash reserves of 8.74M provide 6.16x coverage of short-term debt 1.42M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 47.77M provide exceptional 402.63x coverage of deferred revenue 118645.65, showing strong service capability backing.
  • Strong tangible asset base of 47.77M provides 33.14x coverage of total debt 1.44M, indicating robust asset backing and low credit risk.
  • Retained earnings of 5.29M provide full 228.30x coverage of long-term debt 23159.55, indicating strong internal capital position.
  • Robust tangible asset base of 47.77M provides 5.90x coverage of working capital 8.09M, indicating strong operational backing.

Bear case

  • Operating cash flow of 36511.10 provides insufficient coverage of deferred revenue obligations of 118645.65, which is 0.31x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 36511.10 provides minimal 0.06x coverage of tax expenses of 649086.10, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High depreciation of 24571.35 relative to operating cash flow of 36511.10, which is 0.67x suggests significant maintenance capital requirements affecting free cash flow.
  • Tax assets of 146678.23 provide limited offset against tax liabilities of 1.45M, which is 0.10x, indicating potential future cash flow pressure from tax obligations.
  • Retained earnings of 5.29M provide limited buffer against comprehensive income items of (12.78), which is -413682.47x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.37 2.00
EV to Cash from Ops. EV/CFO 484.09 13.48
EV to Debt EV to Debt 12.26 10.94
EV to EBIT EV/EBIT 4.08 24.16
EV to EBITDA EV/EBITDA 4.05 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 484.09 46.78
EV to Market Cap EV to Market Cap 0.17 1.12
EV to Revenue EV/Rev 0.50 2.81
Price to Book Value [P/B] P/B 10.59 4.24
Price to Earnings [P/E] P/E 28.26 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.80
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 11.22
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 10.90
Interest Coverage Interest Coverage 303.49 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 199.67 61.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.67
EBIAT Growth (1y) % EBIAT Growth (1y) % 53.78 -186.82
EBITDA Growth (1y) % EBITDA Growth (1y) % 53.54 -57.93
EBIT Growth (1y) % EBIT Growth (1y) % 53.53 -102.26
EBT Growth (1y) % EBT Growth (1y) % 52.91 -299.15
EPS Growth (1y) % EPS Growth (1y) % 50.59 -598.34
FCF Growth (1y) % FCF Growth (1y) % -99.62 89.70
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 52.58 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.10 0.88
Cash Payout Ratio Cash Payout Ratio 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 0.23 1.57
Current Ratio Curr Ratio (Qtr) 1.21 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.15 0.79
Interest Cover Ratio Interest Cover Ratio 303.49 111.58
Times Interest Earned Times Interest Earned 303.49 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 12.30 3.54
EBIT Margin % EBIT Margin % 87.23 1.23
EBT Margin % EBT Margin % 12.21 -1.76
Gross Margin % Gross Margin % 16.10 28.65
Net Profit Margin % Net Profit Margin % 10.40 -3.80