Comparison
Why is China Literature Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -7.41% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With ROE of 6.17%, it has a Expensive valuation with a 1.98 Price to Book Value
- Over the past year, while the stock has generated a return of 20.49%, its profits have risen by 19.6% ; the PEG ratio of the company is 1.6
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 Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is China Literature Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
China Literature Ltd.
20.7%
0.58
53.40%
Hang Seng Hong Kong
27.36%
1.03
25.88%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.31%
EBIT Growth (5y)
-7.41%
EBIT to Interest (avg)
23.36
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.44
Tax Ratio
32.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
5.70%
ROE (avg)
6.22%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
1.98
EV to EBIT
103.83
EV to EBITDA
57.61
EV to Capital Employed
2.54
EV to Sales
4.41
PEG Ratio
1.63
Dividend Yield
NA
ROCE (Latest)
2.45%
ROE (Latest)
6.17%
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
Mildly Bearish
Mildly Bearish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 4,073.32 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.24%
RAW MATERIAL COST(Y)
Fallen by -4.58% (YoY
PRE-TAX PROFIT(Q)
Highest at HKD 998.14 MM
NET PROFIT(Q)
Highest at HKD 963.89 MM
EPS(Q)
Highest at HKD 0.9
-1What is not working for the Company
NET SALES(Q)
Lowest at HKD 3,427.17 MM
Here's what is working for China Literature Ltd.
Operating Cash Flow
Highest at HKD 4,073.32 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 (HKD MM)
Debtors Turnover Ratio
Highest at 3.24% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Pre-Tax Profit
Highest at HKD 998.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Pre-Tax Profit
At HKD 998.14 MM has Grown at 80.79%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Net Profit
Highest at HKD 963.89 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
Net Profit
At HKD 963.89 MM has Grown at 62.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
EPS
Highest at HKD 0.9
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (HKD)
Raw Material Cost
Fallen by -4.58% (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 China Literature Ltd.
Net Sales
Lowest at HKD 3,427.17 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (HKD MM)
Non Operating Income
Highest at HKD 0.83 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






