Anhui Huamao Textile Co. Ltd. (000850) 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

Anhui Huamao Textile Co. Ltd.

Why is Anhui Huamao Textile Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 3.43%

The company has been able to generate a Return on Capital Employed (avg) of 3.43% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.28% and Operating profit at 34.45% over the last 5 years

Negative results in Mar 25

DEBTORS TURNOVER RATIO(HY) Lowest at 4.86%
INTEREST COVERAGE RATIO(Q) Lowest at 195.44
PRE-TAX PROFIT(Q) At CNY 17.74 MM has Fallen at -51.41%

With ROE of 1.74%, it has a very attractive valuation with a 0.89 Price to Book Value

Over the past year, while the stock has generated a return of 5.01%, its profits have fallen by -44.2%
At the current price, the company has a high dividend yield of 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 5.01% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Anhui Huamao Textile Co. Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Anhui Huamao Textile Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Anhui Huamao Textile Co. Ltd.

-100.0%

1.51

35.79%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.28%

EBIT Growth (5y)

34.45%

EBIT to Interest (avg)

2.17

Debt to EBITDA (avg)

1.08

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.54

Tax Ratio

19.67%

Dividend Payout Ratio

32.26%

Pledged Shares

Institutional Holding

ROCE (avg)

3.43%

ROE (avg)

5.02%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

72.42

EV to EBITDA

15.73

EV to Capital Employed

0.90

EV to Sales

1.31

PEG Ratio

Dividend Yield

2.34%

ROCE (Latest)

1.24%

ROE (Latest)

1.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

3What is working for the Company

ROCE(HY)

Highest at 6.11%

RAW MATERIAL COST(Y)

Fallen by -2.49% (YoY

-27What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 195.44

PRE-TAX PROFIT(Q)

At CNY 17.74 MM has Fallen at -51.41%

NET PROFIT(Q)

At CNY 20.6 MM has Fallen at -44.31%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.14%

NET SALES(Q)

Lowest at CNY 751.5 MM

OPERATING PROFIT(Q)

Lowest at CNY 18.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.51 %

EPS(Q)

Lowest at CNY -0.04

Here's what is working for Anhui Huamao Textile Co. Ltd.

Raw Material Cost

Fallen by -2.49% (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 Anhui Huamao Textile Co. Ltd.

Interest Coverage Ratio

Lowest at 195.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 17.74 MM has Fallen at -51.41%

over average net sales of the previous four periods of CNY 36.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 20.6 MM has Fallen at -44.31%

over average net sales of the previous four periods of CNY 36.99 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 4.86% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 751.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 751.5 MM has Fallen at -9.08%

over average net sales of the previous four periods of CNY 826.53 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 18.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 3.14%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio