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 -12.36% and Operating profit at -198.93% over the last 5 years

With a fall in Net Sales of -60.27%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
NET SALES(Q) At CNY 118.06 MM has Fallen at -60.27%
ROCE(HY) Lowest at -6.91%
DEBT-EQUITY RATIO (HY) Highest at 8.29 %

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 -24.77%, its profits have fallen by -118.6%
At the current price, the company has a high dividend yield of 1.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.77% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dirui Industrial Co., Ltd.

-25.74%

-1.67

29.14%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.36%

EBIT Growth (5y)

-198.93%

EBIT to Interest (avg)

33.49

Debt to EBITDA (avg)

7.95

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.46

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

1.96

EV to EBIT

-31.21

EV to EBITDA

-51.91

EV to Capital Employed

1.93

EV to Sales

5.74

PEG Ratio

Dividend Yield

1.69%

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

Mildly Bearish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-48What is not working for the Company

NET SALES(Q)

At CNY 118.06 MM has Fallen at -60.27%

ROCE(HY)

Lowest at -6.91%

DEBT-EQUITY RATIO (HY)

Highest at 8.29 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.09 times

RAW MATERIAL COST(Y)

Grown by 59.76% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.72 times

INTEREST(Q)

Highest at CNY 3.48 MM

OPERATING PROFIT(Q)

Lowest at CNY -77.47 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -72.39 MM

NET PROFIT(Q)

Lowest at CNY -60 MM

EPS(Q)

Lowest at CNY -0.22

Here's what is not working for Dirui Industrial Co., Ltd.

Net Sales

At CNY 118.06 MM has Fallen at -60.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -72.39 MM has Fallen at -375.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -60 MM has Fallen at -319.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 3.48 MM has Grown at 57.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 8.29 % 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

Debtors Turnover Ratio

Lowest at 1.09 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 3.48 MM

in the last five periods and Increased by 57.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -77.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -72.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -60 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 0.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 59.76% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales