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

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 -3.48% and Operating profit at -207.75% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At CNY 26.61 MM has Grown at 376.28%
PRE-TAX PROFIT(Q) At CNY -5.88 MM has Fallen at -156.04%
NET PROFIT(Q) At CNY -1.43 MM has Fallen at -109.15%

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 -52.61%, its profits have fallen by -839%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -52.61% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dirui Industrial Co., Ltd.

-52.11%

-2.00

35.16%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.48%

EBIT Growth (5y)

-207.75%

EBIT to Interest (avg)

15.63

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.42

Tax Ratio

18.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.10%

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

1.12

EV to EBIT

-5.23

EV to EBITDA

-5.95

EV to Capital Employed

1.12

EV to Sales

2.20

PEG Ratio

Dividend Yield

ROCE (Latest)

-21.33%

ROE (Latest)

-17.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bullish

Mildly Bearish

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

21What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -45.01% (YoY

NET SALES(Q)

At CNY 230.74 MM has Grown at 37.13%

OPERATING PROFIT(Q)

Highest at CNY 17.83 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.73 %

PRE-TAX PROFIT(Q)

Highest at CNY 5.1 MM

NET PROFIT(Q)

Highest at CNY 9.27 MM

EPS(Q)

Highest at CNY 0.03

-11What is not working for the Company

NET PROFIT(9M)

At CNY -150.03 MM has Grown at -89.67%

INTEREST(Q)

At CNY 2.82 MM has Grown at 38.16%

CASH AND EQV(HY)

Lowest at CNY 922.23 MM

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

Pre-Tax Profit

At CNY 5.1 MM has Grown at 110.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.27 MM has Grown at 121.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 230.74 MM has Grown at 37.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 17.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 7.73 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 5.1 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 9.27 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 -45.01% (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 2.82 MM has Grown at 38.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 922.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents