Hunan Mendale Hometextile Co., Ltd. (002397) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hunan Mendale Hometextile Co., Ltd.

Why is Hunan Mendale Hometextile Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.62%

The company has been able to generate a Return on Capital Employed (avg) of 1.62% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -7.54% and Operating profit at -12.17% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -7.54% and Operating profit at -12.17% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY -63.24 MM
NET SALES(Q) At CNY 325.22 MM has Fallen at -19.28%
INTEREST COVERAGE RATIO(Q) Lowest at 574.37

With ROE of 2.44%, it has a fair valuation with a 1.64 Price to Book Value

Over the past year, while the stock has generated a return of 48.78%, its profits have risen by 35.5% ; the PEG ratio of the company is 1.9

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 Furniture, Home Furnishing)

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

Is Hunan Mendale Hometextile Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Mendale Hometextile Co., Ltd.

-100.0%

2.04

53.59%

China Shanghai Composite

24.3%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.54%

EBIT Growth (5y)

-12.17%

EBIT to Interest (avg)

-2.11

Debt to EBITDA (avg)

2.69

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.95

Tax Ratio

39.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.62%

ROE (avg)

1.35%

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

1.64

EV to EBIT

49.26

EV to EBITDA

13.87

EV to Capital Employed

1.48

EV to Sales

1.52

PEG Ratio

1.89

Dividend Yield

ROCE (Latest)

3.00%

ROE (Latest)

2.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

12What is working for the Company

NET PROFIT(HY)

At CNY 14.34 MM has Grown at 49,099.42%

ROCE(HY)

Highest at 2.21%

RAW MATERIAL COST(Y)

Fallen by -4.23% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 13.81 MM

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -63.24 MM

NET SALES(Q)

At CNY 325.22 MM has Fallen at -19.28%

INTEREST COVERAGE RATIO(Q)

Lowest at 574.37

OPERATING PROFIT MARGIN(Q)

Lowest at 4.58 %

CASH AND EQV(HY)

Lowest at CNY 575.15 MM

OPERATING PROFIT(Q)

Lowest at CNY 14.91 MM

Here's what is working for Hunan Mendale Hometextile Co., Ltd.

Net Profit

At CNY 14.34 MM has Grown at 49,099.42%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 14.34 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 13.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -4.23% (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 Hunan Mendale Hometextile Co., Ltd.

Operating Cash Flow

Lowest at CNY -63.24 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 325.22 MM has Fallen at -19.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 574.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 4.58 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 325.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 14.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 575.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents