QuMei Home Furnishings Group Co., Ltd. (603818) 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

QuMei Home Furnishings Group Co., Ltd.

Why is QuMei Home Furnishings Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.57%

The company has been able to generate a Return on Capital Employed (avg) of 3.57% signifying low profitability per unit of total capital (equity and debt)

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 -3.64% and Operating profit at -41.21% 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 3.17% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.64% and Operating profit at -41.21% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 571.13 MM
PRE-TAX PROFIT(Q) At CNY -44.33 MM has Fallen at -73.71%
NET SALES(Q) Lowest at CNY 823.07 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 27.15%, its profits have risen by 67.7%
At the current price, the company has a high dividend yield of 0.4

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 QuMei Home Furnishings Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

QuMei Home Furnishings Group Co., Ltd.

14.29%

0.43

45.46%

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)

-3.64%

EBIT Growth (5y)

-41.21%

EBIT to Interest (avg)

0.73

Debt to EBITDA (avg)

6.16

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.73

Tax Ratio

0.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.57%

ROE (avg)

3.17%

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

1.22

EV to EBIT

93.73

EV to EBITDA

13.28

EV to Capital Employed

1.11

EV to Sales

1.40

PEG Ratio

Dividend Yield

0.44%

ROCE (Latest)

1.18%

ROE (Latest)

-4.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

6What is working for the Company

NET PROFIT(HY)

Higher at CNY -77.67 MM

ROCE(HY)

Highest at -3.86%

RAW MATERIAL COST(Y)

Fallen by -15.65% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 571.13 MM

PRE-TAX PROFIT(Q)

At CNY -44.33 MM has Fallen at -73.71%

NET SALES(Q)

Lowest at CNY 823.07 MM

OPERATING PROFIT(Q)

Lowest at CNY -1.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.23 %

Here's what is working for QuMei Home Furnishings Group Co., Ltd.

Net Profit

Higher at CNY -77.67 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.65% (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 QuMei Home Furnishings Group Co., Ltd.

Pre-Tax Profit

At CNY -44.33 MM has Fallen at -73.71%

over average net sales of the previous four periods of CNY -25.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 571.13 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 (CNY MM)

Net Sales

Lowest at CNY 823.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -1.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales