ScoreWhy is Guangdong Rongtai Industry Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.03%
- The company has been able to generate a Return on Capital Employed (avg) of 0.03% signifying low profitability per unit of total capital (equity and debt)
2
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 -18.67% and Operating profit at -255.79% 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 5.39% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -18.67% and Operating profit at -255.79% over the last 5 years
4
Negative results in Sep 25
- INTEREST(HY) At CNY 28.32 MM has Grown at 149.4%
- DEBT-EQUITY RATIO (HY) Highest at 124.7 %
- OPERATING PROFIT(Q) Lowest at CNY -20.15 MM
5
With ROE of 11.46%, it has a expensive valuation with a 14.95 Price to Book Value
- Over the past year, while the stock has generated a return of 64.92%, its profits have fallen by -41.8%
Real-Time Research ReportHow 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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Guangdong Rongtai Industry Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong Rongtai Industry Co., Ltd.
69.07%
2.64
68.24%
China Shanghai Composite
16.67%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-18.67%
EBIT Growth (5y)
-255.79%
EBIT to Interest (avg)
-3.47
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.33
Sales to Capital Employed (avg)
0.40
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.03%
ROE (avg)
5.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
130
Industry P/E
Price to Book Value
14.95
EV to EBIT
-308.46
EV to EBITDA
176.89
EV to Capital Employed
7.81
EV to Sales
29.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-2.53%
ROE (Latest)
11.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET PROFIT(HY)
At CNY -13.02 MM has Grown at 59.36%
ROCE(HY)
Highest at 6.64%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.95 times
RAW MATERIAL COST(Y)
Fallen by -171.68% (YoY
NET SALES(Q)
Highest at CNY 107.39 MM
-23What is not working for the Company
INTEREST(HY)
At CNY 28.32 MM has Grown at 149.4%
DEBT-EQUITY RATIO
(HY)
Highest at 124.7 %
OPERATING PROFIT(Q)
Lowest at CNY -20.15 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -18.76 %
PRE-TAX PROFIT(Q)
Lowest at CNY -28.96 MM
NET PROFIT(Q)
Lowest at CNY -30.14 MM
EPS(Q)
Lowest at CNY -0.02
Here's what is working for Guangdong Rongtai Industry Co., Ltd.
Debtors Turnover Ratio
Highest at 4.95 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at CNY 107.39 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -171.68% (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 Guangdong Rongtai Industry Co., Ltd.
Interest
At CNY 28.32 MM has Grown at 149.4%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY -28.96 MM has Fallen at -240.25%
over average net sales of the previous four periods of CNY 20.65 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -30.14 MM has Fallen at -244.54%
over average net sales of the previous four periods of CNY 20.85 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 124.7 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Profit
Lowest at CNY -20.15 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -18.76 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -28.96 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -30.14 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
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