Bros Eastern Co., Ltd. (601339) 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

Bros Eastern Co., Ltd.

Why is Bros Eastern Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.76% and Operating profit at 37.84% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.02% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.76% and Operating profit at 37.84% over the last 5 years

Flat results in Jun 25

NET SALES(HY) At CNY 3,578.07 MM has Grown at -10.04%
DEBTORS TURNOVER RATIO(HY) Lowest at 7.67%

With ROE of 5.86%, it has a very attractive valuation with a 0.86 Price to Book Value

Over the past year, while the stock has generated a return of -5.44%, its profits have risen by 21.3% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 7.6

Below par performance in long term as well as near term

Along with generating -5.44% 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 hold?

Overall Portfolio exposure to Bros Eastern 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 Bros Eastern Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bros Eastern Co., Ltd.

-2.53%

0.08

29.45%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.76%

EBIT Growth (5y)

37.84%

EBIT to Interest (avg)

4.17

Debt to EBITDA (avg)

3.13

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.49

Tax Ratio

12.16%

Dividend Payout Ratio

95.06%

Pledged Shares

Institutional Holding

ROCE (avg)

4.79%

ROE (avg)

9.02%

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

0.86

EV to EBIT

22.53

EV to EBITDA

11.50

EV to Capital Employed

0.89

EV to Sales

1.42

PEG Ratio

0.69

Dividend Yield

7.56%

ROCE (Latest)

3.97%

ROE (Latest)

5.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

16What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -17.39% (YoY

OPERATING PROFIT(Q)

Highest at CNY 342.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.5 %

PRE-TAX PROFIT(Q)

Highest at CNY 221.49 MM

NET PROFIT(Q)

Highest at CNY 217.46 MM

EPS(Q)

Highest at CNY 0.14

-5What is not working for the Company

NET SALES(HY)

At CNY 3,578.07 MM has Grown at -10.04%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.67%

Here's what is working for Bros Eastern Co., Ltd.

Operating Profit

Highest at CNY 342.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 18.5 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 221.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 221.49 MM has Grown at 85.73%

over average net sales of the previous four periods of CNY 119.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 217.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 217.46 MM has Grown at 73%

over average net sales of the previous four periods of CNY 125.7 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -17.39% (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 Bros Eastern Co., Ltd.

Net Sales

At CNY 3,578.07 MM has Grown at -10.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 7.67%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio