Nanjing Xinjiekou Department Store Co. Ltd. (600682) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nanjing Xinjiekou Department Store Co. Ltd.

Why is Nanjing Xinjiekou Department Store Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 7.95%

The company has been able to generate a Return on Capital Employed (avg) of 7.95% 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 -0.77% and Operating profit at -22.67% over the last 5 years

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

INTEREST(9M) At CNY 61.35 MM has Grown at 32.74%
ROCE(HY) Lowest at 1.3%
OPERATING PROFIT(Q) Lowest at CNY 171.71 MM

With ROE of 1.97%, it has a attractive valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of -0.78%, its profits have fallen by -19%
At the current price, the company has a high dividend yield of 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.78% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanjing Xinjiekou Department Store Co. Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Nanjing Xinjiekou Department Store Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Xinjiekou Department Store Co. Ltd.

-0.78%

0.88

41.05%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.77%

EBIT Growth (5y)

-22.67%

EBIT to Interest (avg)

13.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.36

Tax Ratio

37.11%

Dividend Payout Ratio

9.31%

Pledged Shares

Institutional Holding

ROCE (avg)

7.95%

ROE (avg)

4.56%

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

0.49

EV to EBIT

7.80

EV to EBITDA

3.49

EV to Capital Employed

0.26

EV to Sales

0.49

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

3.35%

ROE (Latest)

1.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.19% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -28.62 %

PRE-TAX PROFIT(Q)

Highest at CNY 203.65 MM

NET PROFIT(Q)

Highest at CNY 128.53 MM

-17What is not working for the Company

INTEREST(9M)

At CNY 61.35 MM has Grown at 32.74%

ROCE(HY)

Lowest at 1.3%

OPERATING PROFIT(Q)

Lowest at CNY 171.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.94%

NET SALES(Q)

Lowest at CNY 1,544.47 MM

Here's what is working for Nanjing Xinjiekou Department Store Co. Ltd.

Pre-Tax Profit

Highest at CNY 203.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 128.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -28.62 %

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 -6.19% (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 Xinjiekou Department Store Co. Ltd.

Interest

At CNY 53.47 MM has Grown at 44.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 171.71 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.12 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 1,544.47 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 5.94%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio