Chahua Modern Housewares Co., Ltd. (603615) 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

Chahua Modern Housewares Co., Ltd.

Why is Chahua Modern Housewares Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.06%

The company has been able to generate a Return on Capital Employed (avg) of 1.06% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.11% and Operating profit at -197.12% over the last 5 years

With a growth in Net Sales of 76.25%, the company declared Very Positive results in Mar 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -1.41% (YoY)
CASH AND EQV(HY) Highest at CNY 1,512.48 MM
DEBTORS TURNOVER RATIO(HY) Highest at 5.42%

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 10.32%, its profits have fallen by -120%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chahua Modern Housewares Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Chahua Modern Housewares Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chahua Modern Housewares Co., Ltd.

-100.0%

1.99

47.69%

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)

-1.11%

EBIT Growth (5y)

-197.12%

EBIT to Interest (avg)

-7.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.46

Tax Ratio

8.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.06%

ROE (avg)

0.60%

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

1.78

EV to EBIT

-38.62

EV to EBITDA

60.25

EV to Capital Employed

2.21

EV to Sales

2.44

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.72%

ROE (Latest)

-2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.41% (YoY

CASH AND EQV(HY)

Highest at CNY 1,512.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.42%

PRE-TAX PROFIT(Q)

At CNY -1.19 MM has Grown at 86.01%

NET PROFIT(Q)

At CNY -1.48 MM has Grown at 84.15%

-24What is not working for the Company

NET PROFIT(HY)

At CNY -23.98 MM has Grown at -18,871.58%

INTEREST(HY)

At CNY 2.28 MM has Grown at 29.63%

OPERATING CASH FLOW(Y)

Lowest at CNY 43.9 MM

NET SALES(9M)

At CNY 423.83 MM has Grown at -8.76%

ROCE(HY)

Lowest at -3.27%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.95%

Here's what is working for Chahua Modern Housewares Co., Ltd.

Pre-Tax Profit

At CNY -1.19 MM has Grown at 86.01%

over average net sales of the previous four periods of CNY -8.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -1.48 MM has Grown at 84.15%

over average net sales of the previous four periods of CNY -9.32 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,512.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.42%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.41% (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 Chahua Modern Housewares Co., Ltd.

Interest

At CNY 2.28 MM has Grown at 29.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 43.9 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 423.83 MM has Grown at -8.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.95%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio