Beijing Hualian Department Store Co., Ltd. (000882) 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

Beijing Hualian Department Store Co., Ltd.

Why is Beijing Hualian Department Store Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.93%

The company has been able to generate a Return on Capital Employed (avg) of 1.93% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.40% and Operating profit at 18.97% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.29% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -6.8%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(HY) At CNY -155.86 MM has Grown at -257.09%
OPERATING CASH FLOW(Y) Lowest at CNY 595.37 MM
NET SALES(HY) At CNY 547.2 MM has Grown at -14.61%

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 -31.12%, its profits have fallen by -1546%

Below par performance in long term as well as near term

Along with generating -31.12% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Realty)

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

Is Beijing Hualian Department Store Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Beijing Hualian Department Store Co., Ltd.

-24.51%

0.44

35.29%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.40%

EBIT Growth (5y)

18.97%

EBIT to Interest (avg)

0.53

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

1.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

ROE (avg)

0.29%

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

0.56

EV to EBIT

57.37

EV to EBITDA

5.67

EV to Capital Employed

0.53

EV to Sales

2.80

PEG Ratio

Dividend Yield

ROCE (Latest)

0.93%

ROE (Latest)

-4.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

NET PROFIT(HY)

Higher at CNY -254.18 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.15 times

-38What is not working for the Company

NET SALES(HY)

At CNY 553.83 MM has Grown at -11.12%

ROCE(HY)

Lowest at -7.96%

DEBT-EQUITY RATIO (HY)

Highest at 47.73 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.47 times

INTEREST COVERAGE RATIO(Q)

Lowest at 78.4

RAW MATERIAL COST(Y)

Grown by 20.46% (YoY

INTEREST(Q)

Highest at CNY 64.97 MM

OPERATING PROFIT(Q)

Lowest at CNY 50.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.54 %

PRE-TAX PROFIT(Q)

Lowest at CNY -227.1 MM

NET PROFIT(Q)

Lowest at CNY -216.76 MM

EPS(Q)

Lowest at CNY -0.08

Here's what is working for Beijing Hualian Department Store Co., Ltd.

Inventory Turnover Ratio

Highest at 1.15 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Highest at 1.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Beijing Hualian Department Store Co., Ltd.

Pre-Tax Profit

At CNY -227.1 MM has Fallen at -169.18%

over average net sales of the previous four periods of CNY -84.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -216.76 MM has Fallen at -188.19%

over average net sales of the previous four periods of CNY -75.22 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 64.97 MM has Grown at 29.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 78.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 553.83 MM has Grown at -11.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 47.73 % 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

Debtors Turnover Ratio

Lowest at 2.47 times 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

Interest

Highest at CNY 64.97 MM

in the last five periods and Increased by 29.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 50.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -227.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -216.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.46% (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

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