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

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 -1.27% and Operating profit at -4.87% over the last 5 years

NET SALES(HY) At CNY 1,923.83 MM has Grown at -17.84%
INTEREST(Q) At CNY 3.41 MM has Grown at 31.12%
PRE-TAX PROFIT(Q) At CNY 50.73 MM has Fallen at -47.34%

With ROE of 7.75%, it has a very attractive valuation with a 0.89 Price to Book Value

Over the past year, while the stock has generated a return of 82.14%, 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

The stock has generated a return of 82.14% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

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.

75.38%

2.25

51.74%

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)

-1.27%

EBIT Growth (5y)

-4.87%

EBIT to Interest (avg)

10.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.80

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

0.89

EV to EBIT

10.72

EV to EBITDA

5.71

EV to Capital Employed

0.87

EV to Sales

0.81

PEG Ratio

0.11

Dividend Yield

0.85%

ROCE (Latest)

8.08%

ROE (Latest)

7.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

11What is working for the Company

NET PROFIT(HY)

At CNY 122.87 MM has Grown at 147.06%

OPERATING CASH FLOW(Y)

Highest at CNY 618.76 MM

ROCE(HY)

Highest at 8.04%

RAW MATERIAL COST(Y)

Fallen by -33.84% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -22.42 %

-16What is not working for the Company

NET SALES(HY)

At CNY 1,923.83 MM has Grown at -17.84%

INTEREST(Q)

At CNY 3.41 MM has Grown at 31.12%

PRE-TAX PROFIT(Q)

At CNY 50.73 MM has Fallen at -47.34%

NET PROFIT(Q)

At CNY 39.19 MM has Fallen at -52.02%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.65 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.05 times

OPERATING PROFIT(Q)

Lowest at CNY 58.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.17 %

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

Operating Cash Flow

Highest at CNY 618.76 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -22.42 %

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 -33.84% (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 1,923.83 MM has Grown at -17.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.41 MM has Grown at 31.12%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 50.73 MM has Fallen at -47.34%

over average net sales of the previous four periods of CNY 96.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 39.19 MM has Fallen at -52.02%

over average net sales of the previous four periods of CNY 81.69 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 58.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.65 times

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 5.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio