Zhejiang Semir Garment Co., Ltd. (002563) 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

Zhejiang Semir Garment Co., Ltd.

Why is Zhejiang Semir Garment Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.54% and Operating profit at 1.38% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 550.18 MM
INTEREST COVERAGE RATIO(Q) Lowest at 3,487.92
INTEREST(Q) Highest at CNY 6.85 MM

With ROE of 8.03%, it has a very attractive valuation with a 1.00 Price to Book Value

Over the past year, while the stock has generated a return of -10.69%, its profits have fallen by -21.4%
At the current price, the company has a high dividend yield of 8.4

Below par performance in long term as well as near term

Along with generating -10.69% 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 Zhejiang Semir 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 Semir Garment Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Semir Garment Co., Ltd.

-100.0%

-0.26

33.72%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.54%

EBIT Growth (5y)

1.38%

EBIT to Interest (avg)

70.07

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.96

Tax Ratio

27.42%

Dividend Payout Ratio

82.90%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

19.05%

ROE (avg)

8.85%

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

1.00

EV to EBIT

6.63

EV to EBITDA

4.33

EV to Capital Employed

1.01

EV to Sales

0.52

PEG Ratio

Dividend Yield

8.36%

ROCE (Latest)

15.17%

ROE (Latest)

8.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.85%

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 550.18 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 3,487.92

INTEREST(Q)

Highest at CNY 6.85 MM

OPERATING PROFIT(Q)

Lowest at CNY 238.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.81 %

PRE-TAX PROFIT(Q)

Lowest at CNY 282.32 MM

NET PROFIT(Q)

Fallen at -38.56%

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

Inventory Turnover Ratio

Highest at 2.85%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -6.99% (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 Semir Garment Co., Ltd.

Interest

At CNY 6.85 MM has Grown at 24.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,487.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 550.18 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 6.85 MM

in the last five periods and Increased by 24.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 238.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 282.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -36.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -38.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)