Profit Cultural & Creative Group Co., Ltd. (300640) 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

Profit Cultural & Creative Group Co., Ltd.

Why is Profit Cultural & Creative Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -13.57% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -13.57% over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At CNY -0.29 MM has Grown at -103.48%
INTEREST(HY) At CNY 0.7 MM has Grown at 333.33%
ROCE(HY) Lowest at 1.4%

With ROE of 2.21%, it has a very expensive valuation with a 0.60 Price to Book Value

Over the past year, while the stock has generated a return of 32.84%, its profits have fallen by -17.1%
At the current price, the company has a high dividend yield of 0.3

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 Furniture, Home Furnishing)

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

Is Profit Cultural & Creative Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Profit Cultural & Creative Group Co., Ltd.

-3.27%

1.28

63.15%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.66%

EBIT Growth (5y)

-13.57%

EBIT to Interest (avg)

10.22

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.95

Tax Ratio

47.98%

Dividend Payout Ratio

68.49%

Pledged Shares

Institutional Holding

ROCE (avg)

4.48%

ROE (avg)

3.99%

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

0.60

EV to EBIT

28.52

EV to EBITDA

15.17

EV to Capital Employed

0.61

EV to Sales

0.50

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

2.13%

ROE (Latest)

2.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.92% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 126.28%

NET SALES(Q)

Highest at CNY 262.46 MM

NET PROFIT(Q)

At CNY 3.93 MM has Grown at 62.3%

-25What is not working for the Company

NET PROFIT(HY)

At CNY -0.29 MM has Grown at -103.48%

INTEREST(HY)

At CNY 0.7 MM has Grown at 333.33%

ROCE(HY)

Lowest at 1.4%

DEBT-EQUITY RATIO (HY)

Highest at 3.35 %

INTEREST COVERAGE RATIO(Q)

Lowest at 606.28

CASH AND EQV(HY)

Lowest at CNY 109.16 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.09 %

Here's what is working for Profit Cultural & Creative Group Co., Ltd.

Net Sales

Highest at CNY 262.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 262.46 MM has Grown at 16.25%

over average net sales of the previous four periods of CNY 225.78 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 3.93 MM has Grown at 62.3%

over average net sales of the previous four periods of CNY 2.42 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 126.28%

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 -3.92% (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 Profit Cultural & Creative Group Co., Ltd.

Interest

At CNY 0.7 MM has Grown at 333.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 606.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 3.35 % 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

Operating Profit

Lowest at CNY 2.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 109.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents