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 -13.90% and Operating profit at 9.13% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 95.23%, its profits have risen by 1%

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 Footwear)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Busen Garment Co., Ltd.

93.88%

3.23

45.01%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.90%

EBIT Growth (5y)

9.13%

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)

1.91

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

NA (Loss Making)

Industry P/E

Price to Book Value

56.46

EV to EBIT

-23.55

EV to EBITDA

-26.94

EV to Capital Employed

35.08

EV to Sales

12.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-148.97%

ROE (Latest)

-239.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

19What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -35.11% (YoY

NET SALES(Q)

Highest at CNY 37.04 MM

OPERATING PROFIT(Q)

Highest at CNY 5.86 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.81 %

PRE-TAX PROFIT(Q)

Highest at CNY 5 MM

NET PROFIT(Q)

Highest at CNY 4.8 MM

EPS(Q)

Highest at CNY 0.03

-9What is not working for the Company

NET SALES(HY)

At CNY 56.59 MM has Grown at -14.29%

DEBT-EQUITY RATIO (HY)

Highest at 48.05 %

CASH AND EQV(HY)

Lowest at CNY 8.06 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.88 times

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

Pre-Tax Profit

At CNY 5 MM has Grown at 134.93%

over average net sales of the previous four periods of CNY -14.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.8 MM has Grown at 134.5%

over average net sales of the previous four periods of CNY -13.9 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 37.04 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 37.04 MM has Grown at 29.2%

over average net sales of the previous four periods of CNY 28.67 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 5.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 15.81 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 5 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 4.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -35.11% (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 Zhejiang Busen Garment Co., Ltd.

Debt-Equity Ratio

Highest at 48.05 % and Grown

In each half year 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

Cash and Eqv

Lowest at CNY 8.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio