SZSE:002042

Stock Analysis Report

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Executive Summary

Huafu Fashion Co., Ltd. manufactures and supplies yarn products in China. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.

Share Price & News

How has Huafu Fashion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002042 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 002042's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-1.0%

2042

-1.1%

CN Luxury

-1.3%

CN Market


1 Year Return

-44.7%

2042

-10.6%

CN Luxury

25.5%

CN Market

Return vs Industry: 002042 underperformed the CN Luxury industry which returned -10.6% over the past year.

Return vs Market: 002042 underperformed the CN Market which returned 25.5% over the past year.


Shareholder returns

2042IndustryMarket
7 Day-1.0%-1.1%-1.3%
30 Day-9.0%-7.5%5.4%
90 Day-42.1%-14.8%5.8%
1 Year-43.4%-44.7%-8.6%-10.6%27.6%25.5%
3 Year-44.6%-50.4%-25.9%-29.9%23.6%17.5%
5 Year-16.6%-26.3%-36.5%-41.2%39.6%30.2%

Long-Term Price Volatility Vs. Market

How volatile is Huafu Fashion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Huafu Fashion undervalued compared to its fair value and its price relative to the market?

1.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 002042 (CN¥4.14) is trading above our estimate of fair value (CN¥1.75)

Significantly Below Fair Value: 002042 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002042 is unprofitable, so we can't compare its PE Ratio to the CN Luxury industry average.

PE vs Market: 002042 is unprofitable, so we can't compare its PE Ratio to the CN market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 002042's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 002042 is good value based on its PB Ratio (1x) compared to the CN Luxury industry average (1.8x).


Next Steps

Future Growth

How is Huafu Fashion forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

73.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002042 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.3%).

Earnings vs Market: 002042 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 002042's is expected to become profitable in the next 3 years.

Revenue vs Market: 002042's revenue (15.4% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 002042's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002042's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Huafu Fashion performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002042 is currently unprofitable.

Growing Profit Margin: 002042 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 002042 is unprofitable, and losses have increased over the past 5 years at a rate of 9.4% per year.

Accelerating Growth: Unable to compare 002042's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 002042 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-10.3%).


Return on Equity

High ROE: 002042 has a negative Return on Equity (-4.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Huafu Fashion's financial position?


Financial Position Analysis

Short Term Liabilities: 002042's short term assets (CN¥10.4B) exceed its short term liabilities (CN¥9.6B).

Long Term Liabilities: 002042's short term assets (CN¥10.4B) exceed its long term liabilities (CN¥1.2B).


Debt to Equity History and Analysis

Debt Level: 002042's debt to equity ratio (140.7%) is considered high.

Reducing Debt: 002042's debt to equity ratio has increased from 115.5% to 140.7% over the past 5 years.

Debt Coverage: 002042's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: Insufficient data to determine if 002042's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Huafu Fashion current dividend yield, its reliability and sustainability?

3.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002042's dividend (3.41%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 002042's dividend (3.41%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 002042's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002042's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 002042 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 002042's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

CN¥2m

CEO Compensation


CEO

Ling Chen (57 yo)

no data

Tenure

CN¥2,000,000

Compensation

Ms. Chen Ling Fen serves as Vice-Chairman of the Board of Directors and President at Huafu Fashion Co., Ltd. (formerly known as Huafu Top Dyed Melange Yarn Co., Ltd.) Ms. Chen serves as General Manager of ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huafu Fashion Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huafu Fashion Co., Ltd.
  • Ticker: 2042
  • Exchange: SZSE
  • Founded: 1993
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: CN¥5.905b
  • Shares outstanding: 1.43b
  • Website: https://www.huafuyarn.com

Number of Employees


Location

  • Huafu Fashion Co., Ltd.
  • Tower 1 Chang Fu Jin Mao Building
  • 59th Floor
  • Shenzhen
  • Guangdong Province
  • 518033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2042SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYApr 2005
2042XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYApr 2005

Biography

Huafu Fashion Co., Ltd. manufactures and supplies yarn products in China. The company offers mélange yarn, which is used in underwear textiles, casual wear, sportswear, shirts, business suites, socks, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 09:21
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.