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

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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 -2.85% and Operating profit at -29.97% 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 -2.85% and Operating profit at -29.97% over the last 5 years

Flat results in Mar 25

NET SALES(HY) At CNY 1,787.1 MM has Grown at -9.6%
INTEREST COVERAGE RATIO(Q) Lowest at 32.14
DEBTORS TURNOVER RATIO(HY) Lowest at 6.6%

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 12.50%, its profits have risen by 67.7%
At the current price, the company has a high dividend yield of 0.5

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.

12.5%

0.44

50.40%

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)

-2.85%

EBIT Growth (5y)

-29.97%

EBIT to Interest (avg)

0.73

Debt to EBITDA (avg)

6.16

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.74

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

1.02

EV to EBIT

85.57

EV to EBITDA

12.12

EV to Capital Employed

1.01

EV to Sales

1.28

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

1.18%

ROE (Latest)

-4.52%

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

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

11What is working for the Company

NET PROFIT(HY)

Higher at CNY -45.57 MM

ROCE(HY)

Highest at -3.95%

RAW MATERIAL COST(Y)

Fallen by -48.5% (YoY

EPS(Q)

Highest at CNY -0.01

-9What is not working for the Company

NET SALES(HY)

At CNY 1,787.1 MM has Grown at -9.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 32.14

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.6%

OPERATING PROFIT(Q)

Lowest at CNY 24.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.8 %

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

Net Profit

Higher at CNY -45.57 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

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

Net Profit (CNY MM)

Net Profit

At CNY -45.57 MM has Grown at 73.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -48.5% (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.

Interest Coverage Ratio

Lowest at 32.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 1,787.1 MM has Grown at -9.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 24.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.6%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio