DR Corp. Ltd. () 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

DR Corp. Ltd.

Why is DR Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -30.78% and Operating profit at -125.73% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

NET PROFIT(Q) At CNY 17.23 MM has Fallen at -52.07%
NET SALES(HY) At CNY 740.25 MM has Grown at -9.44%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.49%

With ROE of 0.63%, it has a very expensive valuation with a 0.22 Price to Book Value

Over the past year, while the stock has generated a return of 34.02%, its profits have risen by 69.1% ; the PEG ratio of the company is 0.5

Market Beating Performance

The stock has generated a return of 34.02% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DR Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

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

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

Is DR Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

DR Corp. Ltd.

-100.0%

0.99

51.49%

China Shanghai Composite

15.44%

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)

-30.78%

EBIT Growth (5y)

-125.73%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.27

Tax Ratio

43.63%

Dividend Payout Ratio

377.07%

Pledged Shares

Institutional Holding

ROCE (avg)

44.60%

ROE (avg)

5.87%

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

0.22

EV to EBIT

146.36

EV to EBITDA

-16.78

EV to Capital Employed

-2.68

EV to Sales

-2.50

PEG Ratio

0.50

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

0.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -39.22% (YoY

-28What is not working for the Company

NET PROFIT(Q)

At CNY 17.23 MM has Fallen at -52.07%

NET SALES(HY)

At CNY 740.25 MM has Grown at -9.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.49%

INTEREST(Q)

At CNY 3.42 MM has Grown at 28.19%

INTEREST COVERAGE RATIO(Q)

Lowest at 608.69

PRE-TAX PROFIT(Q)

At CNY 25.69 MM has Fallen at -39.15%

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.8%

OPERATING PROFIT(Q)

Lowest at CNY 20.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.37 %

Here's what is working for DR Corp. Ltd.

Raw Material Cost

Fallen by -39.22% (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 DR Corp. Ltd.

Net Profit

At CNY 17.23 MM has Fallen at -52.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 3.42 MM has Grown at 28.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 608.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 25.69 MM has Fallen at -39.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 740.25 MM has Grown at -9.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 1.49% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 20.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 17.8%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio