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

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 8.79% and Operating profit at -192.70% over the last 5 years

With a growth in Net Sales of 118.72%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
CASH AND EQV(HY) Highest at CNY 1,355.66 MM
INVENTORY TURNOVER RATIO(HY) Highest at 6.34 times
NET SALES(Q) Highest at CNY 514.49 MM

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 -13.15%, its profits have fallen by -120%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.15% returns

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.

-26.52%

1.62

43.72%

China Shanghai Composite

13.33%

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)

8.79%

EBIT Growth (5y)

-192.70%

EBIT to Interest (avg)

-7.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.48

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

5.31

EV to EBIT

-135.07

EV to EBITDA

210.72

EV to Capital Employed

7.73

EV to Sales

8.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.72%

ROE (Latest)

-2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

37What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,355.66 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.34 times

NET SALES(Q)

Highest at CNY 514.49 MM

PRE-TAX PROFIT(Q)

Highest at CNY 9.86 MM

NET PROFIT(Q)

Highest at CNY 9.43 MM

EPS(Q)

Highest at CNY 0.04

-14What is not working for the Company

INTEREST(HY)

At CNY 3.79 MM has Grown at 119.53%

OPERATING CASH FLOW(Y)

Lowest at CNY -208.25 MM

RAW MATERIAL COST(Y)

Grown by 56.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -23.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.59 times

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

Net Sales

At CNY 514.49 MM has Grown at 209.72%

over average net sales of the previous four periods of CNY 166.12 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 9.86 MM has Grown at 287.85%

over average net sales of the previous four periods of CNY -5.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.43 MM has Grown at 233.48%

over average net sales of the previous four periods of CNY -7.06 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 514.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 9.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 9.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,355.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.34 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 Chahua Modern Housewares Co., Ltd.

Interest

At CNY 3.79 MM has Grown at 119.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -208.25 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -23.19 %

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 4.59 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 56.77% (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

Non Operating Income

Highest at CNY 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income