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%

Below par performance in long term as well as near term

Along with generating -12.69% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

-0.36%

1.11

38.40%

China Shanghai Composite

3.23%

1.20

14.07%

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)

16.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.07

Tax Ratio

0.91%

Dividend Payout Ratio

21.39%

Pledged Shares

Institutional Holding

ROCE (avg)

4.15%

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

1.69

EV to EBIT

53.50

EV to EBITDA

23.36

EV to Capital Employed

1.89

EV to Sales

1.24

PEG Ratio

2.12

Dividend Yield

0.55%

ROCE (Latest)

3.53%

ROE (Latest)

4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 19.52 MM has Grown at 128.22%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.22 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.13 times

NET SALES(Q)

Highest at CNY 394.62 MM

OPERATING PROFIT(Q)

Highest at CNY 39.98 MM

NET PROFIT(Q)

At CNY 16.13 MM has Grown at 68.32%

-10What is not working for the Company

NET PROFIT(HY)

At CNY 17.66 MM has Grown at -40.65%

RAW MATERIAL COST(Y)

Grown by 10.92% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -20.35 %

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

Pre-Tax Profit

At CNY 19.52 MM has Grown at 128.22%

over average net sales of the previous four periods of CNY 8.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 394.62 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 394.62 MM has Grown at 24.77%

over average net sales of the previous four periods of CNY 316.28 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 39.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Net Profit

At CNY 16.13 MM has Grown at 68.32%

over average net sales of the previous four periods of CNY 9.59 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.13 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.

Debt-Equity Ratio

Highest at -20.35 %

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 10.92% (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