New World Department Store China Ltd. (825) 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

Wing On Co. International Ltd.

Jiahua Stores Holdings Ltd.

Henderson Investment Ltd.

New World Department Store China Ltd.

Lifestyle China Group Ltd.

AEON Stores (Hong Kong) Co., Ltd.

Century Ginwa Retail Holdings Ltd.

Maoye International Holdings Ltd.

Parkson Retail Group Ltd.

Sincere Co. Ltd.

Shirble Department Store Holdings (China) Ltd.

Why is New World Department Store China Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -11.19% and Operating profit at -198.28% over the last 5 years
The company is Net-Debt Free

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 521.62 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 9.2 times
NET SALES(Q) Lowest at HKD 536.46 MM

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 15.38%, its profits have fallen by -20.7%

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 New World Department Store China Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

New World Department Store China Ltd.

15.38%

0.44

59.35%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.19%

EBIT Growth (5y)

-198.28%

EBIT to Interest (avg)

-0.22

Debt to EBITDA (avg)

4.82

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.27

Tax Ratio

72.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.17%

ROE (avg)

0.94%

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

0.16

EV to EBIT

-18.93

EV to EBITDA

7.92

EV to Capital Employed

0.37

EV to Sales

1.60

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.97%

ROE (Latest)

1.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

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

9What is working for the Company

ROCE(HY)

Highest at 1.08%

INTEREST COVERAGE RATIO(Q)

Highest at 171.19

NET PROFIT(Q)

At HKD 27.03 MM has Grown at 190.46%

OPERATING PROFIT MARGIN(Q)

Highest at 22.09 %

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 521.62 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.2 times

NET SALES(Q)

Lowest at HKD 536.46 MM

RAW MATERIAL COST(Y)

Grown by 13.93% (YoY

CASH AND EQV(HY)

Lowest at HKD 555.19 MM

Here's what is working for New World Department Store China Ltd.

Interest Coverage Ratio

Highest at 171.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At HKD 27.03 MM has Grown at 190.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Profit Margin

Highest at 22.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Here's what is not working for New World Department Store China Ltd.

Operating Cash Flow

Lowest at HKD 521.62 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 536.46 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Debtors Turnover Ratio

Lowest at 9.2 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at HKD 555.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales