Grace Fabric Technology Co., Ltd. (603256) 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

Grace Fabric Technology Co., Ltd.

Why is Grace Fabric Technology Co., Ltd. ?

With a growth in Net Sales of 23.96%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 272.66 MM
ROCE(HY) Highest at 10.18%
INVENTORY TURNOVER RATIO(HY) Highest at 4.27 times

Market Beating performance in long term as well as near term

Along with generating 717.19% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Grace Fabric Technology 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 Grace Fabric Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Grace Fabric Technology Co., Ltd.

634.38%

14.05

76.06%

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)

11.26%

EBIT Growth (5y)

8.73%

EBIT to Interest (avg)

2.94

Debt to EBITDA (avg)

6.40

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.34

Tax Ratio

1.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.73%

ROE (avg)

4.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

282

Industry P/E

Price to Book Value

20.02

EV to EBIT

258.78

EV to EBITDA

134.81

EV to Capital Employed

14.82

EV to Sales

32.42

PEG Ratio

0.77

Dividend Yield

ROCE (Latest)

5.73%

ROE (Latest)

7.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 272.66 MM

ROCE(HY)

Highest at 10.18%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.27 times

RAW MATERIAL COST(Y)

Fallen by -102.87% (YoY

NET SALES(Q)

At CNY 302.09 MM has Grown at 23.96%

PRE-TAX PROFIT(Q)

At CNY 58.34 MM has Grown at 100.8%

NET PROFIT(Q)

At CNY 51.43 MM has Grown at 88.13%

-4What is not working for the Company

INTEREST(Q)

At CNY 7.75 MM has Grown at 13.82%

Here's what is working for Grace Fabric Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 272.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 4.27 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 302.09 MM has Grown at 23.96%

over average net sales of the previous four periods of CNY 243.7 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 58.34 MM has Grown at 100.8%

over average net sales of the previous four periods of CNY 29.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 51.43 MM has Grown at 88.13%

over average net sales of the previous four periods of CNY 27.34 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -102.87% (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 Grace Fabric Technology Co., Ltd.

Interest

At CNY 7.75 MM has Grown at 13.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)