Huafu Fashion Co., Ltd. (002042) 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

Huafu Fashion Co., Ltd.

Why is Huafu Fashion Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.25%

The company has been able to generate a Return on Capital Employed (avg) of 1.25% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -8.63% and Operating profit at 15.67% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.26% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.63% and Operating profit at 15.67% over the last 5 years

Negative results in Mar 26

NET PROFIT(Q) At CNY -45.99 MM has Fallen at -1,236.69%
INTEREST(Q) At CNY 48.55 MM has Grown at inf%
INTEREST COVERAGE RATIO(Q) Lowest at 67.21

Below par performance in long term as well as near term

Along with generating -21.16% 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 Garments & Apparels)

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

Is Huafu Fashion Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huafu Fashion Co., Ltd.

-26.11%

-0.21

45.23%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.63%

EBIT Growth (5y)

15.67%

EBIT to Interest (avg)

0.02

Debt to EBITDA (avg)

15.11

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

0.76

Tax Ratio

5.25%

Dividend Payout Ratio

32.21%

Pledged Shares

Institutional Holding

ROCE (avg)

1.30%

ROE (avg)

2.26%

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

0.97

EV to EBIT

398.37

EV to EBITDA

38.39

EV to Capital Employed

0.99

EV to Sales

1.17

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

0.25%

ROE (Latest)

-0.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,539.91 MM

ROCE(HY)

Highest at 1.27%

RAW MATERIAL COST(Y)

Fallen by -7.67% (YoY

-17What is not working for the Company

NET PROFIT(Q)

At CNY -45.99 MM has Fallen at -1,236.69%

INTEREST(Q)

At CNY 48.55 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 67.21

CASH AND EQV(HY)

Lowest at CNY 4,842.45 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

NET SALES(Q)

Lowest at CNY 2,031.7 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -37.08 MM

Here's what is working for Huafu Fashion Co., Ltd.

Operating Cash Flow

Highest at CNY 1,539.91 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -7.67% (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 Huafu Fashion Co., Ltd.

Net Sales

At CNY 2,031.7 MM has Fallen at -27.17%

over average net sales of the previous four periods of CNY 2,789.77 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -37.08 MM has Fallen at -620%

over average net sales of the previous four periods of CNY 7.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -45.99 MM has Fallen at -1,236.69%

over average net sales of the previous four periods of CNY 4.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 48.55 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 67.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 2,031.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY -37.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 4,842.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio