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

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 -6.55% and Operating profit at -4.97% 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 -6.55% and Operating profit at -4.97% over the last 5 years

Flat results in Sep 25

INTEREST(Q) At CNY 4.01 MM has Grown at 17.44%
INTEREST COVERAGE RATIO(Q) Lowest at 113.57
CASH AND EQV(HY) Lowest at CNY 645.62 MM

With ROE of 2.44%, it has a fair valuation with a 2.22 Price to Book Value

Over the past year, while the stock has generated a return of -5.37%, its profits have risen by 35.5% ; the PEG ratio of the company is 2.6

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.

-7.02%

2.16

41.84%

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)

-6.55%

EBIT Growth (5y)

-4.97%

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

2.22

EV to EBIT

63.77

EV to EBITDA

17.96

EV to Capital Employed

1.92

EV to Sales

1.96

PEG Ratio

2.56

Dividend Yield

ROCE (Latest)

3.00%

ROE (Latest)

2.44%

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

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

7What is working for the Company

ROCE(HY)

Highest at 2.57%

NET PROFIT(Q)

At CNY 1.1 MM has Grown at 131.11%

RAW MATERIAL COST(Y)

Fallen by -32.62% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 35.73 %

-9What is not working for the Company

INTEREST(Q)

At CNY 4.01 MM has Grown at 17.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 113.57

CASH AND EQV(HY)

Lowest at CNY 645.62 MM

OPERATING PROFIT(Q)

Lowest at CNY 4.56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.25 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.64 MM

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

Net Profit

At CNY 1.1 MM has Grown at 131.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 35.73 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -32.62% (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.

Interest

At CNY 4.01 MM has Grown at 17.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 113.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 4.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -30.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 645.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents