Zbom Home Collection Co., Ltd. (603801) 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

Zbom Home Collection Co., Ltd.

Why is Zbom Home Collection Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.14% and Operating profit at 3.85% over the last 5 years

With a fall in Operating Profit of -23.94%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
NET SALES(HY) At CNY 2,358.4 MM has Grown at -20.88%
NET PROFIT(HY) At CNY 156.72 MM has Grown at -44.86%
INTEREST(HY) At CNY 5.12 MM has Grown at 10.75%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.88% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Furniture, Home Furnishing)

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

Is Zbom Home Collection Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zbom Home Collection Co., Ltd.

-34.88%

-1.09

33.92%

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)

10.14%

EBIT Growth (5y)

3.85%

EBIT to Interest (avg)

35.69

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.32

Tax Ratio

7.95%

Dividend Payout Ratio

67.45%

Pledged Shares

Institutional Holding

ROCE (avg)

16.70%

ROE (avg)

17.36%

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

1.21

EV to EBIT

13.23

EV to EBITDA

7.51

EV to Capital Employed

1.21

EV to Sales

0.84

PEG Ratio

Dividend Yield

6.43%

ROCE (Latest)

9.11%

ROE (Latest)

10.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,926.15 MM

-34What is not working for the Company

NET SALES(HY)

At CNY 2,358.4 MM has Grown at -20.88%

NET PROFIT(HY)

At CNY 156.72 MM has Grown at -44.86%

INTEREST(HY)

At CNY 5.12 MM has Grown at 10.75%

ROCE(HY)

Lowest at 11.05%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,093.99

RAW MATERIAL COST(Y)

Grown by 9.89% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.89%

OPERATING PROFIT(Q)

Lowest at CNY 31.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.9 %

PRE-TAX PROFIT(Q)

Lowest at CNY 39.8 MM

EPS(Q)

Lowest at CNY 0.1

Here's what is working for Zbom Home Collection Co., Ltd.

Cash and Eqv

Highest at CNY 2,926.15 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 Zbom Home Collection Co., Ltd.

Interest

At CNY 2.9 MM has Grown at 29.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,093.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 813.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 31.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 39.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 40.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 3.89%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.89% (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

Non Operating Income

Highest at CNY 0.27 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income