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 -11.93% and Operating profit at -185.33% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at HKD 663.85 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 10.14 times
NET SALES(Q) Lowest at HKD 570.14 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 8.33%, its profits have risen by 143.7% ; the PEG ratio of the company is 0.1

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.

8.33%

0.59

61.75%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.93%

EBIT Growth (5y)

-185.33%

EBIT to Interest (avg)

-0.22

Debt to EBITDA (avg)

4.82

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.28

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

0.15

EV to EBIT

-15.02

EV to EBITDA

6.45

EV to Capital Employed

0.35

EV to Sales

1.20

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

-2.30%

ROE (Latest)

1.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 0.73%

DEBT-EQUITY RATIO (HY)

Lowest at 85.23 %

RAW MATERIAL COST(Y)

Fallen by 0.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 15.71 times

EPS(Q)

Highest at HKD 0.01

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 663.85 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.14 times

NET SALES(Q)

Lowest at HKD 570.14 MM

CASH AND EQV(HY)

Lowest at HKD 743.19 MM

NET PROFIT(Q)

Fallen at -64.63%

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

Debt-Equity Ratio

Lowest at 85.23 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

EPS

Highest at HKD 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Highest at 15.71 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.88% (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 New World Department Store China Ltd.

Operating Cash Flow

Lowest at HKD 663.85 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 570.14 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 10.14 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

Net Profit

Fallen at -64.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Cash and Eqv

Lowest at HKD 743.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents