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 -5.00% and Operating profit at -20.96%
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 -5.00% and Operating profit at -20.96%

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(HY) At CNY -0.36 MM has Grown at -102.96%
ROCE(HY) Lowest at 0.91%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.72 times

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, High Return

Absolute

Risk Adjusted

Volatility

Haining China Leather Market Co., Ltd.

3.5%

1.22

30.33%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.00%

EBIT Growth (5y)

-20.96%

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

54.83%

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

0.67

EV to EBIT

42.52

EV to EBITDA

9.82

EV to Capital Employed

0.62

EV to Sales

4.45

PEG Ratio

Dividend Yield

0.86%

ROCE (Latest)

1.46%

ROE (Latest)

1.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.32% (YoY

-13What is not working for the Company

NET PROFIT(HY)

At CNY -0.36 MM has Grown at -102.96%

ROCE(HY)

Lowest at 0.91%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.72 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,255.45

CASH AND EQV(HY)

Lowest at CNY 2,147.87 MM

DEBT-EQUITY RATIO (HY)

Highest at 7.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.74 times

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

Raw Material Cost

Fallen by -22.32% (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.

Net Profit

At CNY -0.36 MM has Grown at -102.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 1,255.45

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 0.72 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

Cash and Eqv

Lowest at CNY 2,147.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 7.19 %

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 0.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio