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

Flat results in Mar 26

NET PROFIT(HY) At CNY 136.75 MM has Grown at -35.13%
INTEREST COVERAGE RATIO(Q) Lowest at 1,681.83
NET SALES(Q) Lowest at CNY 846.45 MM

Real-Time Research Report

Verdict Report

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 Lianfa Textile Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Lianfa Textile Co., Ltd.

35.19%

1.56

54.01%

China Shanghai Composite

24.02%

1.63

13.30%

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

1.24

EV to EBIT

14.88

EV to EBITDA

9.16

EV to Capital Employed

1.31

EV to Sales

1.24

PEG Ratio

0.14

Dividend Yield

0.60%

ROCE (Latest)

8.82%

ROE (Latest)

7.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -28.96 %

RAW MATERIAL COST(Y)

Fallen by -10.47% (YoY

-13What is not working for the Company

NET PROFIT(HY)

At CNY 136.75 MM has Grown at -35.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,681.83

NET SALES(Q)

Lowest at CNY 846.45 MM

OPERATING PROFIT(Q)

Lowest at CNY 63.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.56 %

EPS(Q)

Lowest at CNY 0.03

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

Debt-Equity Ratio

Lowest at -28.96 % and Grown

In each half year 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 -10.47% (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 Profit

At CNY 136.75 MM has Grown at -35.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 846.45 MM has Fallen at -15.75%

over average net sales of the previous four periods of CNY 1,004.72 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 1,681.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 846.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 63.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)