Dongrui Food Group Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dongrui Food Group Co., Ltd.

Why is Dongrui Food Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.39%

The company has been able to generate a Return on Capital Employed (avg) of 0.39% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 24.07% and Operating profit at 119.21% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.06% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 3 consecutive quarters

NET SALES(HY) At CNY 1,105.44 MM has Grown at 40.88%
OPERATING CASH FLOW(Y) Highest at CNY 226.17 MM
NET PROFIT(HY) Higher at CNY 16.81 MM

With ROE of 1.34%, it has a fair valuation with a 1.23 Price to Book Value

Over the past year, while the stock has generated a return of -10.29%, its profits have risen by 115.2% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dongrui Food Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Dongrui Food Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dongrui Food Group Co., Ltd.

-10.29%

-1.47

27.36%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.07%

EBIT Growth (5y)

119.21%

EBIT to Interest (avg)

-1.60

Debt to EBITDA (avg)

4.60

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.27

Tax Ratio

31.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.39%

ROE (avg)

0.06%

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

1.23

EV to EBIT

49.36

EV to EBITDA

12.11

EV to Capital Employed

1.15

EV to Sales

2.90

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

2.34%

ROE (Latest)

1.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

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

22What is working for the Company

NET SALES(HY)

At CNY 1,105.44 MM has Grown at 40.88%

OPERATING CASH FLOW(Y)

Highest at CNY 226.17 MM

NET PROFIT(HY)

Higher at CNY 16.81 MM

ROCE(HY)

Highest at 0.67%

DEBTORS TURNOVER RATIO(HY)

Highest at 59.75 times

-19What is not working for the Company

INTEREST(HY)

At CNY 41.15 MM has Grown at 17.14%

PRE-TAX PROFIT(Q)

At CNY 10.31 MM has Fallen at -70.12%

NET PROFIT(Q)

At CNY 8.12 MM has Fallen at -74.97%

INTEREST COVERAGE RATIO(Q)

Lowest at 139.54

OPERATING PROFIT MARGIN(Q)

Lowest at 5.64 %

RAW MATERIAL COST(Y)

Grown by 12.48% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 28.5 MM

Here's what is working for Dongrui Food Group Co., Ltd.

Net Sales

At CNY 1,105.44 MM has Grown at 40.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 226.17 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 59.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Dongrui Food Group Co., Ltd.

Pre-Tax Profit

At CNY 10.31 MM has Fallen at -70.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.12 MM has Fallen at -74.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 41.15 MM has Grown at 17.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 139.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 5.64 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 28.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 12.48% (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