Shanghai Challenge Textile Co., Ltd. (002486) 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

Shanghai Challenge Textile Co., Ltd.

Why is Shanghai Challenge Textile Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.56%

The company has been able to generate a Return on Capital Employed (avg) of 5.56% signifying low profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 10.03%, the company declared Very Positive results in Sep 25

NET PROFIT(Q) Highest at CNY 22.25 MM
RAW MATERIAL COST(Y) Fallen by -15.37% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 4.02 times

With ROE of 2.72%, it has a very expensive valuation with a 2.09 Price to Book Value

Over the past year, while the stock has generated a return of 21.76%, its profits have fallen by -39.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Challenge Textile Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shanghai Challenge Textile Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Challenge Textile Co., Ltd.

31.02%

1.70

38.44%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.75%

EBIT Growth (5y)

-18.54%

EBIT to Interest (avg)

17.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.04

Tax Ratio

7.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.56%

ROE (avg)

4.33%

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

2.09

EV to EBIT

61.88

EV to EBITDA

26.29

EV to Capital Employed

2.47

EV to Sales

1.63

PEG Ratio

Dividend Yield

ROCE (Latest)

3.99%

ROE (Latest)

2.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

20What is working for the Company

NET PROFIT(Q)

Highest at CNY 22.25 MM

RAW MATERIAL COST(Y)

Fallen by -15.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.02 times

PRE-TAX PROFIT(Q)

Highest at CNY 23.77 MM

EPS(Q)

Highest at CNY 0.03

-11What is not working for the Company

INTEREST(HY)

At CNY 0.82 MM has Grown at 70.37%

OPERATING CASH FLOW(Y)

Lowest at CNY 79.02 MM

Here's what is working for Shanghai Challenge Textile Co., Ltd.

Net Profit

At CNY 22.25 MM has Grown at 248.85%

over average net sales of the previous four periods of CNY 6.38 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 23.77 MM has Grown at 127.46%

over average net sales of the previous four periods of CNY 10.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 22.25 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 23.77 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 4.02 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 -15.37% (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 Shanghai Challenge Textile Co., Ltd.

Interest

At CNY 0.82 MM has Grown at 70.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 79.02 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)