Zhejiang Busen Garment Co., Ltd. (002569) 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

Zhejiang Busen Garment Co., Ltd.

Why is Zhejiang Busen Garment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.32%

The company has been able to generate a Return on Capital Employed (avg) of 2.32% 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 -8.85% and Operating profit at 15.75% over the last 5 years

With a growth in Net Sales of 13.06%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 9.23 MM
NET SALES(HY) At CNY 90.62 MM has Grown at 44.13%
NET PROFIT(HY) Higher at CNY 10.17 MM

With ROE of 20.79%, it has a fair valuation with a 57.58 Price to Book Value

Over the past year, while the stock has generated a return of 57.34%, its profits have risen by 116.6% ; the PEG ratio of the company is 2.4

Consistent Returns over the last 3 years

Along with generating 57.34% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Busen Garment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Zhejiang Busen Garment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Busen Garment Co., Ltd.

-100.0%

3.91

42.62%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.85%

EBIT Growth (5y)

15.75%

EBIT to Interest (avg)

-59.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

2.19

Tax Ratio

0.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.32%

ROE (avg)

4.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

277

Industry P/E

Price to Book Value

57.58

EV to EBIT

212.57

EV to EBITDA

122.64

EV to Capital Employed

164.49

EV to Sales

15.36

PEG Ratio

2.38

Dividend Yield

ROCE (Latest)

77.39%

ROE (Latest)

20.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 9.23 MM

NET SALES(HY)

At CNY 90.62 MM has Grown at 44.13%

NET PROFIT(HY)

Higher at CNY 10.17 MM

ROCE(HY)

Highest at 24.75%

CASH AND EQV(HY)

Highest at CNY 108.89 MM

DEBT-EQUITY RATIO (HY)

Lowest at -65.02 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.81 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.27 times

-11What is not working for the Company

INTEREST(9M)

At CNY 0.88 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At CNY -3.86 MM has Fallen at -271.26%

NET PROFIT(Q)

At CNY -4.17 MM has Fallen at -292.39%

RAW MATERIAL COST(Y)

Grown by 24.21% (YoY

Here's what is working for Zhejiang Busen Garment Co., Ltd.

Net Sales

At CNY 90.62 MM has Grown at 44.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 9.23 MM and Grown

In each year 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 108.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -65.02 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.27 times

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 Zhejiang Busen Garment Co., Ltd.

Interest

At CNY 0.88 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -3.86 MM has Fallen at -271.26%

over average net sales of the previous four periods of CNY 2.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.17 MM has Fallen at -292.39%

over average net sales of the previous four periods of CNY 2.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 24.21% (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