ScoreWhy is Lu Thai Textile Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.35%
- The company has been able to generate a Return on Capital Employed (avg) of 4.35% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 5.27% and Operating profit at 95.55% over the last 5 years
3
Negative results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at CNY 1,094.07 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 527.47
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.02 times
4
With ROE of 6.64%, it has a attractive valuation with a 0.34 Price to Book Value
- Over the past year, while the stock has generated a return of -8.21%, its profits have risen by 36.9% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 3.5
5
Below par performance in long term as well as near term
- Along with generating -8.21% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lu Thai 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 Lu Thai Textile Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lu Thai Textile Co., Ltd.
-9.25%
-0.86
23.07%
China Shanghai Composite
19.22%
1.46
13.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.27%
EBIT Growth (5y)
95.55%
EBIT to Interest (avg)
4.52
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.49
Tax Ratio
9.74%
Dividend Payout Ratio
34.42%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
4.35%
ROE (avg)
4.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.34
EV to EBIT
4.69
EV to EBITDA
2.68
EV to Capital Employed
0.27
EV to Sales
0.42
PEG Ratio
0.14
Dividend Yield
3.48%
ROCE (Latest)
5.82%
ROE (Latest)
6.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -9.17 %
RAW MATERIAL COST(Y)
Fallen by -7.11% (YoY
CASH AND EQV(HY)
Highest at CNY 7,241.93 MM
-13What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 1,094.07 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 527.47
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.02 times
NET SALES(Q)
Lowest at CNY 1,355.54 MM
OPERATING PROFIT(Q)
Lowest at CNY 128.36 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.47 %
PRE-TAX PROFIT(Q)
At CNY 124.11 MM has Fallen at -34.27%
NET PROFIT(Q)
At CNY 101.43 MM has Fallen at -37.32%
Here's what is working for Lu Thai Textile Co., Ltd.
Debt-Equity Ratio
Lowest at -9.17 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at CNY 7,241.93 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -7.11% (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 Lu Thai Textile Co., Ltd.
Interest Coverage Ratio
Lowest at 527.47
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at CNY 1,094.07 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 1,355.54 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Net Sales
At CNY 1,355.54 MM has Fallen at -7.93%
over average net sales of the previous four periods of CNY 1,472.32 MMMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 128.36 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 9.47 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At CNY 124.11 MM has Fallen at -34.27%
over average net sales of the previous four periods of CNY 188.82 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 101.43 MM has Fallen at -37.32%
over average net sales of the previous four periods of CNY 161.82 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 2.02 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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