Haining China Leather Market Co., Ltd. (002344) 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

Haining China Leather Market Co., Ltd.

Why is Haining China Leather Market Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.94%

Poor long term growth as Net Sales has grown by an annual rate of -5.90% and Operating profit at -15.94%
The company has been able to generate a Return on Equity (avg) of 2.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.90% and Operating profit at -15.94%

The company has declared Negative results for the last 12 consecutive quarters

INTEREST(HY) At CNY 4.89 MM has Grown at 50.33%
OPERATING CASH FLOW(Y) Lowest at CNY -129.46 MM
ROCE(HY) Lowest at 0.57%

Below par performance in long term as well as near term

Along with generating -10.28% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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 Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Haining China Leather Market Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Haining China Leather Market Co., Ltd.

-13.52%

0.61

29.63%

China Shanghai Composite

21.28%

1.52

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.90%

EBIT Growth (5y)

-15.94%

EBIT to Interest (avg)

9.06

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

37.47%

Dividend Payout Ratio

72.73%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.61%

ROE (avg)

2.94%

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

0.57

EV to EBIT

50.16

EV to EBITDA

9.67

EV to Capital Employed

0.55

EV to Sales

4.13

PEG Ratio

Dividend Yield

1.01%

ROCE (Latest)

1.09%

ROE (Latest)

1.17%

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

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.18% (YoY

-26What is not working for the Company

INTEREST(HY)

At CNY 4.89 MM has Grown at 50.33%

OPERATING CASH FLOW(Y)

Lowest at CNY -129.46 MM

ROCE(HY)

Lowest at 0.57%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.53 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.7 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,458.91

CASH AND EQV(HY)

Lowest at CNY 942.36 MM

DEBT-EQUITY RATIO (HY)

Highest at 16.62 %

PRE-TAX PROFIT(Q)

Fallen at -37.28%

NET PROFIT(Q)

Fallen at -38.17%

Here's what is working for Haining China Leather Market Co., Ltd.

Raw Material Cost

Fallen by -4.18% (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 Haining China Leather Market Co., Ltd.

Interest

At CNY 4.89 MM has Grown at 50.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,458.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 0.53 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.7 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY -129.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Fallen at -37.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -38.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 942.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 16.62 %

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