A-Zenith Home Furnishings Co., Ltd. (603389) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

A-Zenith Home Furnishings Co., Ltd.

Why is A-Zenith Home Furnishings Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of -5.68% and Operating profit at 8.45% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -90.07 MM
DEBT-EQUITY RATIO (HY) Highest at 222.63 %
INTEREST(Q) At CNY 2.74 MM has Grown at 748.5%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 550.37%, its profits have fallen by -8.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is A-Zenith Home Furnishings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

A-Zenith Home Furnishings Co., Ltd.

682.44%

13.22

64.94%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.68%

EBIT Growth (5y)

8.45%

EBIT to Interest (avg)

-35.15

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.48

Tax Ratio

1.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

40.49

EV to EBIT

-83.82

EV to EBITDA

-140.48

EV to Capital Employed

26.64

EV to Sales

45.79

PEG Ratio

Dividend Yield

ROCE (Latest)

-31.78%

ROE (Latest)

-54.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -691.5% (YoY

OPERATING PROFIT(Q)

Highest at CNY 6.26 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.11 %

PRE-TAX PROFIT(Q)

Highest at CNY 2.3 MM

NET PROFIT(Q)

Highest at CNY 1.68 MM

EPS(Q)

Highest at CNY 0.01

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -90.07 MM

DEBT-EQUITY RATIO (HY)

Highest at 222.63 %

INTEREST(Q)

At CNY 2.74 MM has Grown at 748.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.76 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.46 times

Here's what is working for A-Zenith Home Furnishings Co., Ltd.

Pre-Tax Profit

At CNY 2.3 MM has Grown at 108.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.68 MM has Grown at 106.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 6.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 12.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 2.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -691.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for A-Zenith Home Furnishings Co., Ltd.

Interest

At CNY 2.74 MM has Grown at 748.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 222.63 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at CNY -90.07 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 0.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio