AEON Stores (Hong Kong) Co., Ltd. (984) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wing On Co. International Ltd.

Jiahua Stores Holdings Ltd.

Henderson Investment Ltd.

New World Department Store China Ltd.

Lifestyle China Group Ltd.

Century Ginwa Retail Holdings Ltd.

AEON Stores (Hong Kong) Co., Ltd.

Sincere Co. Ltd.

Parkson Retail Group Ltd.

Maoye International Holdings Ltd.

Shirble Department Store Holdings (China) Ltd.

Why is AEON Stores (Hong Kong) Co., Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -4.08% and Operating profit at -180.21% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.87

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at HKD 1,473.82 MM
DEBT-EQUITY RATIO (HY) Highest at -493.94 %
NET SALES(Q) Lowest at HKD 4,043.2 MM

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 -11.49%, its profits have fallen by -76.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.49% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Retailing)

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

Is AEON Stores (Hong Kong) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AEON Stores (Hong Kong) Co., Ltd.

-9.41%

-0.18

85.75%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.08%

EBIT Growth (5y)

-180.21%

EBIT to Interest (avg)

-1.87

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

-20.15

Tax Ratio

0.65%

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

-0.23

EV to EBIT

-0.05

EV to EBITDA

0.12

EV to Capital Employed

-0.05

EV to Sales

0.00

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for AEON Stores (Hong Kong) Co., Ltd.

Depreciation

At HKD 424.19 MM has Grown at 9.41%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for AEON Stores (Hong Kong) Co., Ltd.

Operating Cash Flow

Lowest at HKD 1,473.82 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 4,043.2 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Debt-Equity Ratio

Highest at -493.94 % 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

Interest

Highest at HKD 119.42 MM

in the last five periods and Increased by 23.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Net Profit

Lowest at HKD -175.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Cash and Eqv

Lowest at HKD 848.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 8.95%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 23.15% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales