Jiangsu Lianfa Textile Co., Ltd. (002394) 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

Jiangsu Lianfa Textile Co., Ltd.

Why is Jiangsu Lianfa Textile Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.15% and Operating profit at -6.88% over the last 5 years

NET SALES(HY) At CNY 1,620.55 MM has Grown at -25.6%
INTEREST(Q) At CNY 7.73 MM has Grown at 15.75%
INTEREST COVERAGE RATIO(Q) Lowest at 1,020.79

With ROE of 7.75%, it has a very attractive valuation with a 0.82 Price to Book Value

Over the past year, while the stock has generated a return of 55.40%, its profits have risen by 103.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 55.40% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Lianfa Textile Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

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

Is Jiangsu Lianfa Textile Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Lianfa Textile Co., Ltd.

53.84%

2.15

39.59%

China Shanghai Composite

14.77%

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)

-0.15%

EBIT Growth (5y)

-6.88%

EBIT to Interest (avg)

10.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.81

Tax Ratio

15.07%

Dividend Payout Ratio

16.06%

Pledged Shares

Institutional Holding

ROCE (avg)

8.49%

ROE (avg)

6.09%

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

0.82

EV to EBIT

9.65

EV to EBITDA

5.14

EV to Capital Employed

0.78

EV to Sales

0.73

PEG Ratio

0.10

Dividend Yield

0.93%

ROCE (Latest)

8.08%

ROE (Latest)

7.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 577.97 MM

NET PROFIT(HY)

Higher at CNY 210.8 MM

ROCE(HY)

Highest at 6.29%

RAW MATERIAL COST(Y)

Fallen by -21.06% (YoY

-15What is not working for the Company

NET SALES(HY)

At CNY 1,620.55 MM has Grown at -25.6%

INTEREST(Q)

At CNY 7.73 MM has Grown at 15.75%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,020.79

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.85%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04%

OPERATING PROFIT(Q)

Lowest at CNY 78.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.57 %

Here's what is working for Jiangsu Lianfa Textile Co., Ltd.

Net Profit

At CNY 210.8 MM has Grown at 110.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 210.8 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)

Operating Cash Flow

Highest at CNY 577.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -21.06% (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 Jiangsu Lianfa Textile Co., Ltd.

Net Sales

At CNY 1,620.55 MM has Grown at -25.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 7.73 MM has Grown at 15.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,020.79

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 78.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.85%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.04%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio