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

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 5.44% and Operating profit at 156.80% 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 5.44% and Operating profit at 156.80% over the last 5 years

Flat results in Sep 25

INTEREST(Q) At CNY 24.43 MM has Grown at 12.52%
RAW MATERIAL COST(Y) Grown by 22.65% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 9.6 times

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 39.39%, 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

Market Beating Performance

The stock has generated a return of 39.39% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

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, High Return

Absolute

Risk Adjusted

Volatility

Bros Eastern Co., Ltd.

26.36%

1.24

31.87%

China Shanghai Composite

16.67%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.44%

EBIT Growth (5y)

156.80%

EBIT to Interest (avg)

4.17

Debt to EBITDA (avg)

3.13

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.50

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

22.46

EV to EBITDA

11.47

EV to Capital Employed

0.89

EV to Sales

1.41

PEG Ratio

0.69

Dividend Yield

7.59%

ROCE (Latest)

3.97%

ROE (Latest)

5.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

NET PROFIT(9M)

Higher at CNY 541.51 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.7 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.63 times

NET SALES(Q)

Highest at CNY 2,133.77 MM

-6What is not working for the Company

INTEREST(Q)

At CNY 24.43 MM has Grown at 12.52%

RAW MATERIAL COST(Y)

Grown by 22.65% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.6 times

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

Net Sales

Highest at CNY 2,133.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 23.7 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 541.51 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Bros Eastern Co., Ltd.

Interest

At CNY 24.43 MM has Grown at 12.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 9.6 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 22.65% (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