Why is Hunan Mendale Hometextile Co., Ltd. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -6.21% and Operating profit at 1.72% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 1.35% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -6.21% and Operating profit at 1.72% over the last 5 years
4
Positive results in Mar 26
- ROCE(HY) Highest at 4.42%
- DEBT-EQUITY RATIO (HY) Lowest at 30.71 %
- NET PROFIT(Q) At CNY 15.84 MM has Grown at 57.95%
5
With ROE of 4.34%, it has a fair valuation with a 1.94 Price to Book Value
- Over the past year, while the stock has generated a return of 11.78%, its profits have risen by 108.4% ; the PEG ratio of the company is 0.4
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.
0.28%
2.19
45.64%
China Shanghai Composite
3.0%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.21%
EBIT Growth (5y)
1.72%
EBIT to Interest (avg)
-1.57
Debt to EBITDA (avg)
2.34
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
0.92
Tax Ratio
22.63%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.10%
ROE (avg)
1.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
57
Industry P/E
Price to Book Value
2.49
EV to EBIT
45.11
EV to EBITDA
22.75
EV to Capital Employed
2.16
EV to Sales
1.99
PEG Ratio
0.53
Dividend Yield
NA
ROCE (Latest)
4.78%
ROE (Latest)
4.34%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
11What is working for the Company
NET PROFIT(HY)
At CNY 34.03 MM has Grown at 48.15%
ROCE(HY)
Highest at 4.58%
RAW MATERIAL COST(Y)
Fallen by 0.21% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.28 times
-2What is not working for the Company
INTEREST(Q)
At CNY 3.08 MM has Grown at 10.22%
Here's what is working for Hunan Mendale Hometextile Co., Ltd.
Net Profit
At CNY 34.03 MM has Grown at 48.15%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 2.28 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.21% (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 3.08 MM has Grown at 10.22%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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