UE Furniture Co., Ltd. (603600) 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

UE Furniture Co., Ltd.

Why is UE Furniture Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.02% and Operating profit at -3.06% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 14.05 MM has Grown at 78.27%
NET PROFIT(HY) At CNY 135.47 MM has Grown at -25.61%
ROCE(HY) Lowest at 11.75%

With ROE of 13.29%, it has a very attractive valuation with a 1.56 Price to Book Value

Over the past year, while the stock has generated a return of -6.13%, its profits have risen by 4.6% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 3.2

Below par performance in long term as well as near term

Along with generating -6.13% 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 UE Furniture Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is UE Furniture Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

UE Furniture Co., Ltd.

-14.6%

0.16

33.77%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.02%

EBIT Growth (5y)

-3.06%

EBIT to Interest (avg)

15.04

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.39

Tax Ratio

7.09%

Dividend Payout Ratio

51.16%

Pledged Shares

Institutional Holding

ROCE (avg)

12.95%

ROE (avg)

15.05%

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

1.56

EV to EBIT

11.93

EV to EBITDA

8.44

EV to Capital Employed

1.56

EV to Sales

0.73

PEG Ratio

2.55

Dividend Yield

3.22%

ROCE (Latest)

13.11%

ROE (Latest)

13.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 635.43 MM

CASH AND EQV(HY)

Highest at CNY 2,625.31 MM

-17What is not working for the Company

INTEREST(HY)

At CNY 14.05 MM has Grown at 78.27%

NET PROFIT(HY)

At CNY 135.47 MM has Grown at -25.61%

ROCE(HY)

Lowest at 11.75%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,015.39

RAW MATERIAL COST(Y)

Grown by 6.04% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 67.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.22 %

Here's what is working for UE Furniture Co., Ltd.

Operating Cash Flow

Highest at CNY 635.43 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,625.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for UE Furniture Co., Ltd.

Interest

At CNY 14.05 MM has Grown at 78.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,015.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 135.47 MM has Grown at -25.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 67.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 6.04% (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