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 7.43% and Operating profit at -3.59% over the last 5 years

Negative results in Mar 26

ROCE(HY) Lowest at 2.34%
INTEREST COVERAGE RATIO(Q) Lowest at 1,301.26
INVENTORY TURNOVER RATIO(HY) Lowest at 3.15 times

With ROE of 3.29%, it has a very expensive valuation with a 1.67 Price to Book Value

Over the past year, while the stock has generated a return of -10.52%, its profits have fallen by -27.6%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -10.52% 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 Shenzhen Textile (Holdings) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

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

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Textile (Holdings) Co., Ltd.

-7.45%

0.51

45.00%

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)

7.43%

EBIT Growth (5y)

-3.59%

EBIT to Interest (avg)

4.99

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.97

Tax Ratio

9.32%

Dividend Payout Ratio

35.53%

Pledged Shares

Institutional Holding

ROCE (avg)

3.17%

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

1.60

EV to EBIT

60.60

EV to EBITDA

15.04

EV to Capital Employed

1.90

EV to Sales

1.17

PEG Ratio

Dividend Yield

0.46%

ROCE (Latest)

3.13%

ROE (Latest)

3.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 7,080.74

RAW MATERIAL COST(Y)

Fallen by -33.39% (YoY

CASH AND EQV(HY)

Highest at CNY 2,596.44 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.61 times

OPERATING PROFIT(Q)

Highest at CNY 98.73 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.35 %

PRE-TAX PROFIT(Q)

Highest at CNY 44.98 MM

NET PROFIT(Q)

Highest at CNY 25.72 MM

EPS(Q)

Highest at CNY 0.06

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07 times

Here's what is working for Shenzhen Textile (Holdings) Co., Ltd.

Interest Coverage Ratio

Highest at 7,080.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at CNY 98.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 12.35 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 44.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 25.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,596.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -33.39% (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 Shenzhen Textile (Holdings) Co., Ltd.

Inventory Turnover Ratio

Lowest at 3.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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