Why is Better Life Commercial Chain Share Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.21%
- Poor long term growth as Net Sales has grown by an annual rate of -28.34% and Operating profit at -204.47% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
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 52.25%, its profits have risen by 409.2% ; the PEG ratio of the company is 0
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 Better Life Commercial Chain Share Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Better Life Commercial Chain Share Co., Ltd.
23.76%
1.30
51.88%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-28.34%
EBIT Growth (5y)
-204.47%
EBIT to Interest (avg)
0.83
Debt to EBITDA (avg)
8.06
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
0.25
Tax Ratio
9.46%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.21%
ROE (avg)
4.96%
Valuation Key Factors 
Factor
Value
P/E Ratio
2
Industry P/E
Price to Book Value
0.58
EV to EBIT
-20.92
EV to EBITDA
362.63
EV to Capital Employed
0.75
EV to Sales
2.71
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
-3.57%
ROE (Latest)
24.88%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY -350.17 MM
ROCE(HY)
Highest at 27.2%
DEBT-EQUITY RATIO
(HY)
Lowest at 0 %
NET SALES(Q)
At CNY 973.94 MM has Grown at 29.39%
PRE-TAX PROFIT(Q)
At CNY 0 MM has Grown at 100%
-6What is not working for the Company
INTEREST(9M)
At CNY 146.49 MM has Grown at 10.57%
RAW MATERIAL COST(Y)
Grown by 104.93% (YoY
CASH AND EQV(HY)
Lowest at CNY 994.4 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 0%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0%
Here's what is working for Better Life Commercial Chain Share Co., Ltd.
Operating Cash Flow
Highest at CNY -350.17 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 973.94 MM has Grown at 29.39%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 0 MM has Grown at 100%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Debt-Equity Ratio
Lowest at 0 %
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 Better Life Commercial Chain Share Co., Ltd.
Interest
At CNY 146.49 MM has Grown at 10.57%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Cash and Eqv
Lowest at CNY 994.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 104.93% (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






