Nanjing Central Emporium Stocks Co., Ltd. (600280) 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

Nanjing Central Emporium Stocks Co., Ltd.

Why is Nanjing Central Emporium Stocks Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.25%

Poor long term growth as Net Sales has grown by an annual rate of -18.44% and Operating profit at 21.97% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared negative results for the last 7 consecutive quarters

ROCE(HY) Lowest at -24.6%
DEBT-EQUITY RATIO (HY) Highest at 966.35 %
PRE-TAX PROFIT(Q) At CNY -35.57 MM has Fallen at -40.9%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.23%, its profits have fallen by -22.1%

Below par performance in long term as well as near term

Along with generating -11.23% 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 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 Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nanjing Central Emporium Stocks Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Central Emporium Stocks Co., Ltd.

-9.78%

0.77

50.57%

China Shanghai Composite

13.33%

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)

-18.44%

EBIT Growth (5y)

21.97%

EBIT to Interest (avg)

0.87

Debt to EBITDA (avg)

10.14

Net Debt to Equity (avg)

8.22

Sales to Capital Employed (avg)

0.35

Tax Ratio

33.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.25%

ROE (avg)

2.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.69

EV to EBIT

51.77

EV to EBITDA

18.82

EV to Capital Employed

1.50

EV to Sales

4.46

PEG Ratio

Dividend Yield

ROCE (Latest)

2.90%

ROE (Latest)

-25.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

5What is working for the Company

NET PROFIT(HY)

Higher at CNY -55.42 MM

RAW MATERIAL COST(Y)

Fallen by -38.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.08 times

-22What is not working for the Company

ROCE(HY)

Lowest at -24.6%

DEBT-EQUITY RATIO (HY)

Highest at 966.35 %

PRE-TAX PROFIT(Q)

At CNY -35.57 MM has Fallen at -40.9%

NET SALES(Q)

Lowest at CNY 461.68 MM

OPERATING PROFIT(Q)

Lowest at CNY 38.74 MM

NET PROFIT(Q)

Fallen at -27.36%

Here's what is working for Nanjing Central Emporium Stocks Co., Ltd.

Debtors Turnover Ratio

Highest at 11.08 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 -38.67% (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 Nanjing Central Emporium Stocks Co., Ltd.

Pre-Tax Profit

At CNY -35.57 MM has Fallen at -40.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 966.35 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CNY 461.68 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 38.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Fallen at -27.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)