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)

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

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

With a growth in Net Profit of 57.77%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
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%

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 12.06%, its profits have risen by 108.4% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hunan Mendale Hometextile Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Mendale Hometextile Co., Ltd.

13.82%

2.60

45.60%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.21%

EBIT Growth (5y)

1.72%

EBIT to Interest (avg)

-2.11

Debt to EBITDA (avg)

2.69

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.92

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

1.94

EV to EBIT

36.14

EV to EBITDA

18.22

EV to Capital Employed

1.73

EV to Sales

1.59

PEG Ratio

0.41

Dividend Yield

ROCE (Latest)

4.78%

ROE (Latest)

4.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

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%

-5What is not working for the Company

INTEREST(HY)

At CNY 8.3 MM has Grown at 8.07%

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.42 times

OPERATING PROFIT(Q)

Lowest at CNY 19.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.28 %

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

Net Profit

At CNY 15.84 MM has Grown at 57.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 30.71 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Hunan Mendale Hometextile Co., Ltd.

Interest

At CNY 8.3 MM has Grown at 8.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 19.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 11.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio