ScoreWhy is QuMei Home Furnishings Group Co., Ltd. ?
1
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)
2
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
3
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
4
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
5
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 ReportHow 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.
-32.81%
0.43
45.46%
China Shanghai Composite
21.43%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.92%
EBIT Growth (5y)
-139.71%
EBIT to Interest (avg)
0.73
Debt to EBITDA (avg)
6.16
Net Debt to Equity (avg)
0.97
Sales to Capital Employed (avg)
0.71
Tax Ratio
0.87%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.57%
ROE (avg)
3.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.84
EV to EBIT
-854.96
EV to EBITDA
17.30
EV to Capital Employed
0.92
EV to Sales
1.17
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.11%
ROE (Latest)
-7.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -13.41% (YoY
PRE-TAX PROFIT(Q)
Highest at CNY -19.72 MM
NET PROFIT(Q)
Highest at CNY -7.2 MM
EPS(Q)
Highest at CNY 0
-18What is not working for the Company
NET PROFIT(HY)
At CNY -73.82 MM has Grown at -61.99%
INTEREST(HY)
At CNY 174.1 MM has Grown at 7.11%
DEBT-EQUITY RATIO
(HY)
Highest at 114.48 %
INTEREST COVERAGE RATIO(Q)
Lowest at 6.43
CASH AND EQV(HY)
Lowest at CNY 1,015.57 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.78 times
OPERATING PROFIT(Q)
Lowest at CNY 4.73 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.56 %
Here's what is working for QuMei Home Furnishings Group Co., Ltd.
Pre-Tax Profit
Highest at CNY -19.72 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY -19.72 MM has Grown at 58.47%
over average net sales of the previous four periods of CNY -47.47 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY -7.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY -7.2 MM has Grown at 84.12%
over average net sales of the previous four periods of CNY -45.32 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -13.41% (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 6.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CNY 174.1 MM has Grown at 7.11%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 114.48 % and Grown
In each half year in the last five Semi-Annual periodsMOJO 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 4.73 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 0.56 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at CNY 1,015.57 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 3.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Non Operating Income
Highest at CNY 5.84 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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