Shenzhen Textile (Holdings) Co., Ltd. (000045) 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

Shenzhen Textile (Holdings) Co., Ltd.

Why is Shenzhen Textile (Holdings) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.19%

The company has been able to generate a Return on Capital Employed (avg) of 3.19% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 10.53% and Operating profit at 25.18% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 243.14 MM
NET PROFIT(HY) At CNY 34.95 MM has Grown at -38.63%
ROCE(HY) Lowest at 2.37%

With ROE of 4.02%, it has a expensive valuation with a 1.98 Price to Book Value

Over the past year, while the stock has generated a return of 16.04%, its profits have fallen by -14.6%
At the current price, the company has a high dividend yield of 0.6

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 Electronics & Appliances)

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

Is Shenzhen Textile (Holdings) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Textile (Holdings) Co., Ltd.

20.15%

1.25

44.73%

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)

10.53%

EBIT Growth (5y)

25.18%

EBIT to Interest (avg)

18.15

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.95

Tax Ratio

4.30%

Dividend Payout Ratio

40.23%

Pledged Shares

Institutional Holding

ROCE (avg)

3.19%

ROE (avg)

3.68%

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

1.98

EV to EBIT

38.23

EV to EBITDA

12.58

EV to Capital Employed

2.52

EV to Sales

1.45

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

6.58%

ROE (Latest)

4.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 243.14 MM

NET PROFIT(HY)

At CNY 34.95 MM has Grown at -38.63%

ROCE(HY)

Lowest at 2.37%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,747.29

RAW MATERIAL COST(Y)

Grown by 30.87% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.21 times

OPERATING PROFIT(Q)

Lowest at CNY 29.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.4 %

Here's what is not working for Shenzhen Textile (Holdings) Co., Ltd.

Net Profit

At CNY 34.95 MM has Grown at -38.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 243.14 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)

Interest Coverage Ratio

Lowest at 1,747.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 29.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 30.87% (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