Why is Jiangsu Huaxicun Co. Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 8.65% and Operating profit at -8.94% over the last 5 years
2
Negative results in Mar 26
- NET PROFIT(HY) At CNY -206 MM has Grown at -451.37%
- ROCE(HY) Lowest at 0.48%
- RAW MATERIAL COST(Y) Grown by 11.68% (YoY)
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -19.10% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Jiangsu Huaxicun Co. Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Jiangsu Huaxicun Co. Ltd.
-19.1%
-0.25
39.49%
China Shanghai Composite
18.48%
1.36
13.57%
Quality key factors
Factor
Value
Sales Growth (5y)
8.65%
EBIT Growth (5y)
-8.94%
EBIT to Interest (avg)
2.02
Debt to EBITDA (avg)
1.24
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
0.52
Tax Ratio
7.66%
Dividend Payout Ratio
47.28%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.31%
ROE (avg)
8.55%
Valuation Key Factors 
Factor
Value
P/E Ratio
159
Industry P/E
Price to Book Value
1.03
EV to EBIT
40.59
EV to EBITDA
29.88
EV to Capital Employed
1.03
EV to Sales
1.51
PEG Ratio
NA
Dividend Yield
0.67%
ROCE (Latest)
2.54%
ROE (Latest)
0.65%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 335.75 MM
NET PROFIT(Q)
At CNY 80.28 MM has Grown at 1,042.35%
-18What is not working for the Company
NET PROFIT(HY)
At CNY -206 MM has Grown at -451.37%
ROCE(HY)
Lowest at 0.48%
RAW MATERIAL COST(Y)
Grown by 11.68% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.23 times
PRE-TAX PROFIT(Q)
Lowest at CNY 18.9 MM
Here's what is working for Jiangsu Huaxicun Co. Ltd.
Net Profit
At CNY 80.28 MM has Grown at 1,042.35%
over average net sales of the previous four periods of CNY 7.03 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 335.75 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Here's what is not working for Jiangsu Huaxicun Co. Ltd.
Pre-Tax Profit
At CNY 18.9 MM has Fallen at -76.55%
over average net sales of the previous four periods of CNY 80.59 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
Lowest at CNY 18.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 8.23 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 11.68% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






