JOEONE Co., Ltd. (601566) 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

JOEONE Co., Ltd.

Why is JOEONE Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.05%

The company has been able to generate a Return on Capital Employed (avg) of 6.05% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.37% and Operating profit at 11.79% over the last 5 years

Negative results in Sep 25

NET SALES(Q) At CNY 633.13 MM has Fallen at -18.36%
PRE-TAX PROFIT(Q) At CNY -15.67 MM has Fallen at -126.83%
NET PROFIT(Q) At CNY -3.8 MM has Fallen at -106.59%

With ROE of 5.79%, it has a very attractive valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of 32.05%, its profits have fallen by -10.9%
At the current price, the company has a high dividend yield of 3.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JOEONE Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is JOEONE Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

JOEONE Co., Ltd.

21.44%

0.33

52.35%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.37%

EBIT Growth (5y)

11.79%

EBIT to Interest (avg)

14.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.66

Tax Ratio

1.92%

Dividend Payout Ratio

97.85%

Pledged Shares

Institutional Holding

ROCE (avg)

6.05%

ROE (avg)

4.89%

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

1.25

EV to EBIT

26.61

EV to EBITDA

12.48

EV to Capital Employed

1.34

EV to Sales

1.29

PEG Ratio

Dividend Yield

3.49%

ROCE (Latest)

5.03%

ROE (Latest)

5.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly 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

8What is working for the Company

NET PROFIT(HY)

At CNY -8.83 MM has Grown at 85.54%

ROCE(HY)

Highest at 8.82%

RAW MATERIAL COST(Y)

Fallen by -8.33% (YoY

CASH AND EQV(HY)

Highest at CNY 3,522.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at -30.88 %

DEBTORS TURNOVER RATIO(HY)

Highest at 12.21 times

-12What is not working for the Company

NET SALES(Q)

At CNY 633.13 MM has Fallen at -18.36%

PRE-TAX PROFIT(Q)

At CNY -15.67 MM has Fallen at -126.83%

NET PROFIT(Q)

At CNY -3.8 MM has Fallen at -106.59%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.16 times

OPERATING PROFIT(Q)

Lowest at CNY -63.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.01 %

Here's what is working for JOEONE Co., Ltd.

Cash and Eqv

Highest at CNY 3,522.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -30.88 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 12.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.33% (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 JOEONE Co., Ltd.

Net Sales

At CNY 633.13 MM has Fallen at -18.36%

over average net sales of the previous four periods of CNY 775.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -15.67 MM has Fallen at -126.83%

over average net sales of the previous four periods of CNY 58.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.8 MM has Fallen at -106.59%

over average net sales of the previous four periods of CNY 57.72 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -63.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -10.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio