Zhejiang Xinao Textiles, Inc. (603889) 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 Xinao Textiles, Inc.

Why is Zhejiang Xinao Textiles, Inc. ?

ROCE(HY) Highest at 14.74%
INTEREST COVERAGE RATIO(Q) Highest at 2,564.74
RAW MATERIAL COST(Y) Fallen by 1.73% (YoY)

With ROE of 14.05%, it has a very attractive valuation with a 2.66 Price to Book Value

Over the past year, while the stock has generated a return of -1.61%, its profits have risen by 16.9% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 1.9

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Zhejiang Xinao Textiles, Inc. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Zhejiang Xinao Textiles, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Xinao Textiles, Inc.

-0.82%

-0.40

49.34%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.71%

EBIT Growth (5y)

28.02%

EBIT to Interest (avg)

15.42

Debt to EBITDA (avg)

0.98

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.92

Tax Ratio

13.92%

Dividend Payout Ratio

40.64%

Pledged Shares

Institutional Holding

ROCE (avg)

12.26%

ROE (avg)

11.64%

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

2.66

EV to EBIT

18.63

EV to EBITDA

14.41

EV to Capital Employed

2.22

EV to Sales

2.20

PEG Ratio

1.12

Dividend Yield

1.90%

ROCE (Latest)

11.94%

ROE (Latest)

14.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

ROCE(HY)

Highest at 14.74%

INTEREST COVERAGE RATIO(Q)

Highest at 2,564.74

RAW MATERIAL COST(Y)

Fallen by 1.73% (YoY

NET SALES(Q)

Highest at CNY 1,801.45 MM

OPERATING PROFIT(Q)

Highest at CNY 324.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.02 %

PRE-TAX PROFIT(Q)

Highest at CNY 257.6 MM

NET PROFIT(Q)

Highest at CNY 205.34 MM

EPS(Q)

Highest at CNY 0.22

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.8 times

DEBT-EQUITY RATIO (HY)

Highest at 39.59 %

Here's what is working for Zhejiang Xinao Textiles, Inc.

Net Sales

At CNY 1,801.45 MM has Grown at 37.66%

over average net sales of the previous four periods of CNY 1,308.64 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Interest Coverage Ratio

Highest at 2,564.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 1,801.45 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 324.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 18.02 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 257.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 257.6 MM has Grown at 65.66%

over average net sales of the previous four periods of CNY 155.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 205.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 205.34 MM has Grown at 64.61%

over average net sales of the previous four periods of CNY 124.74 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 1.73% (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 Xinao Textiles, Inc.

Inventory Turnover Ratio

Lowest at 1.8 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at 39.59 %

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