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

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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 14.07% and Operating profit at 7.64% over the last 5 years

Negative results in Mar 25

NET SALES(Q) At CNY 1,003.78 MM has Fallen at -15.06%
INTEREST COVERAGE RATIO(Q) Lowest at 680.92
DEBT-EQUITY RATIO (HY) Highest at 3.47 %

With ROE of 13.29%, it has a very attractive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of 5.67%, its profits have risen by 4.6% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 4.2

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?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

UE Furniture Co., Ltd.

5.67%

0.55

37.94%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.07%

EBIT Growth (5y)

7.64%

EBIT to Interest (avg)

15.04

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.41

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

1.20

EV to EBIT

9.16

EV to EBITDA

6.48

EV to Capital Employed

1.20

EV to Sales

0.56

PEG Ratio

1.97

Dividend Yield

4.18%

ROCE (Latest)

13.11%

ROE (Latest)

13.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

NET SALES(HY)

At CNY 2,358.47 MM has Grown at 25.56%

INVENTORY TURNOVER RATIO(HY)

Highest at 7.63%

CASH AND EQV(HY)

Highest at CNY 2,168.2 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 9.15%

-19What is not working for the Company

NET SALES(Q)

At CNY 1,003.78 MM has Fallen at -15.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 680.92

DEBT-EQUITY RATIO (HY)

Highest at 3.47 %

INTEREST(Q)

Highest at CNY 6.45 MM

OPERATING PROFIT(Q)

Lowest at CNY 43.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.38 %

PRE-TAX PROFIT(Q)

At CNY 58.15 MM has Fallen at -28.92%

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

Inventory Turnover Ratio

Highest at 7.63% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 2,168.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 9.15%

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 UE Furniture Co., Ltd.

Net Sales

At CNY 1,003.78 MM has Fallen at -15.06%

over average net sales of the previous four periods of CNY 1,181.73 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 6.45 MM has Grown at 213.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 680.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 6.45 MM

in the last five periods and Increased by 213.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 43.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 58.15 MM has Fallen at -28.92%

over average net sales of the previous four periods of CNY 81.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 3.47 %

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