Dirui Industrial Co., Ltd. (300396) 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

Dirui Industrial Co., Ltd.

Why is Dirui Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -6.77% and Operating profit at -186.99% over the last 5 years

With a fall in Net Sales of -21.93%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 4 consecutive quarters
INTEREST(HY) At CNY 5.59 MM has Grown at 29.8%
OPERATING CASH FLOW(Y) Lowest at CNY -130.24 MM
NET SALES(Q) At CNY 179.93 MM has Fallen at -72.7%

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 -17.56%, its profits have fallen by -118.6%
At the current price, the company has a high dividend yield of 1.9

Below par performance in long term as well as near term

Along with generating -17.56% 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 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 Pharmaceuticals & Biotechnology)

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

Is Dirui Industrial Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dirui Industrial Co., Ltd.

-19.94%

-1.15

33.48%

China Shanghai Composite

14.77%

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)

-6.77%

EBIT Growth (5y)

-186.99%

EBIT to Interest (avg)

33.49

Debt to EBITDA (avg)

7.95

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.48

Tax Ratio

100.00%

Dividend Payout Ratio

49.96%

Pledged Shares

Institutional Holding

ROCE (avg)

12.52%

ROE (avg)

11.82%

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

1.75

EV to EBIT

-27.89

EV to EBITDA

-46.40

EV to Capital Employed

1.72

EV to Sales

5.13

PEG Ratio

Dividend Yield

1.90%

ROCE (Latest)

-6.18%

ROE (Latest)

-2.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.64% (YoY

-42What is not working for the Company

INTEREST(HY)

At CNY 5.59 MM has Grown at 29.8%

OPERATING CASH FLOW(Y)

Lowest at CNY -130.24 MM

NET SALES(Q)

At CNY 179.93 MM has Fallen at -72.7%

PRE-TAX PROFIT(Q)

At CNY 10.5 MM has Fallen at -92.3%

NET PROFIT(Q)

At CNY 15.68 MM has Fallen at -87.16%

ROCE(HY)

Lowest at 1.69%

DEBT-EQUITY RATIO (HY)

Highest at 7.67 %

CASH AND EQV(HY)

Lowest at CNY 980.67 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.78%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.31%

Here's what is working for Dirui Industrial Co., Ltd.

Raw Material Cost

Fallen by -20.64% (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 Dirui Industrial Co., Ltd.

Interest

At CNY 5.59 MM has Grown at 29.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 179.93 MM has Fallen at -72.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 10.5 MM has Fallen at -92.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.68 MM has Fallen at -87.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -130.24 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 7.67 % 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 980.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.78%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio