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)

Negative results in Mar 26

PRE-TAX PROFIT(Q) At CNY 1.95 MM has Fallen at -82.44%
NET PROFIT(Q) At CNY 1.52 MM has Fallen at -86.85%
NET SALES(Q) At CNY 269.97 MM has Fallen at -14.64%

Underperformed the market in the last 1 year

The stock has generated a return of 0.42% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

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 Garments & Apparels)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Challenge Textile Co., Ltd.

-2.06%

1.34

37.96%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.46%

EBIT Growth (5y)

-18.85%

EBIT to Interest (avg)

17.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.06

Tax Ratio

7.13%

Dividend Payout Ratio

21.39%

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

1.77

EV to EBIT

56.63

EV to EBITDA

24.73

EV to Capital Employed

2.00

EV to Sales

1.31

PEG Ratio

2.23

Dividend Yield

ROCE (Latest)

3.53%

ROE (Latest)

4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

NET PROFIT(9M)

At CNY 18.12 MM has Grown at 242.59%

OPERATING CASH FLOW(Y)

Highest at CNY 92.8 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.62 times

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 1.95 MM has Fallen at -82.44%

NET PROFIT(Q)

At CNY 1.52 MM has Fallen at -86.85%

NET SALES(Q)

At CNY 269.97 MM has Fallen at -14.64%

RAW MATERIAL COST(Y)

Grown by 7.41% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -21.32 %

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

Operating Cash Flow

Highest at CNY 92.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 8.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shanghai Challenge Textile Co., Ltd.

Pre-Tax Profit

At CNY 1.95 MM has Fallen at -82.44%

over average net sales of the previous four periods of CNY 11.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.52 MM has Fallen at -86.85%

over average net sales of the previous four periods of CNY 11.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 269.97 MM has Fallen at -14.64%

over average net sales of the previous four periods of CNY 316.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -21.32 %

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

Raw Material Cost

Grown by 7.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales