Why is Anhui Huamao Textile Co. Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 0.24% and Operating profit at 6.19% over the last 5 years
3
Flat results in Sep 25
- NET PROFIT(9M) At CNY 97.98 MM has Grown at -32.23%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.48 times
- INTEREST COVERAGE RATIO(Q) Lowest at 22.09
4
Underperformed the market in the last 1 year
- The stock has generated a return of 14.21% in the last 1 year, much lower than market (China Shanghai Composite) returns of 24.70%
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 Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Anhui Huamao Textile Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Anhui Huamao Textile Co. Ltd.
14.21%
1.14
38.45%
China Shanghai Composite
24.7%
1.91
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
0.24%
EBIT Growth (5y)
6.19%
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
0
Institutional Holding
0
ROCE (avg)
3.43%
ROE (avg)
5.02%
Valuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
Price to Book Value
0.92
EV to EBIT
74.54
EV to EBITDA
16.19
EV to Capital Employed
0.93
EV to Sales
1.35
PEG Ratio
NA
Dividend Yield
2.27%
ROCE (Latest)
1.24%
ROE (Latest)
1.74%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
ROCE(HY)
Highest at 6.89%
DEBT-EQUITY RATIO
(HY)
Lowest at 4.58 %
NET SALES(Q)
Highest at CNY 933.29 MM
-10What is not working for the Company
NET PROFIT(9M)
At CNY 97.98 MM has Grown at -32.23%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.48 times
INTEREST COVERAGE RATIO(Q)
Lowest at 22.09
RAW MATERIAL COST(Y)
Grown by 13.21% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 2.28 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.24 %
Here's what is working for Anhui Huamao Textile Co. Ltd.
Net Sales
Highest at CNY 933.29 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 4.58 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Anhui Huamao Textile Co. Ltd.
Net Profit
At CNY 97.98 MM has Grown at -32.23%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 22.09
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debtors Turnover Ratio
Lowest at 4.48 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Profit
Lowest at CNY 2.28 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 0.24 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 13.21% (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
Non Operating Income
Highest at CNY 0.45 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






