Guangdong Rongtai Industry Co., Ltd. (600589) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Rongtai Industry Co., Ltd.

Why is Guangdong Rongtai Industry Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.03%

Poor long term growth as Net Sales has grown by an annual rate of -19.68% and Operating profit at -215.97% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Mar 25

NET PROFIT(HY) At CNY 56.73 MM has Grown at -75.29%
OPERATING CASH FLOW(Y) Lowest at CNY -64.44 MM
DEBT-EQUITY RATIO (HY) Highest at 112.35 %

With ROE of 11.46%, it has a expensive valuation with a 6.79 Price to Book Value

Over the past year, while the stock has generated a return of 23.89%, its profits have fallen by -41.8%

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 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.

23.89%

1.23

68.65%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-19.68%

EBIT Growth (5y)

-215.97%

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)

0.41

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.03%

ROE (avg)

5.39%

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

6.79

EV to EBIT

-151.07

EV to EBITDA

86.63

EV to Capital Employed

3.83

EV to Sales

14.53

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.53%

ROE (Latest)

11.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

14What is working for the Company

ROCE(HY)

Highest at 3.64%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.62%

RAW MATERIAL COST(Y)

Fallen by -2,238.16% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 52.2 MM

NET PROFIT(Q)

Highest at CNY 51.06 MM

EPS(Q)

Highest at CNY 0.04

-17What is not working for the Company

NET PROFIT(HY)

At CNY 56.73 MM has Grown at -75.29%

OPERATING CASH FLOW(Y)

Lowest at CNY -64.44 MM

DEBT-EQUITY RATIO (HY)

Highest at 112.35 %

INTEREST(Q)

Highest at CNY 11.98 MM

Here's what is working for Guangdong Rongtai Industry Co., Ltd.

Pre-Tax Profit

At CNY 52.2 MM has Grown at 979%

over average net sales of the previous four periods of CNY -5.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 51.06 MM has Grown at 1,022.74%

over average net sales of the previous four periods of CNY -5.53 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 4.62% and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY 52.2 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 51.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -2,238.16% (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.

Operating Cash Flow

Lowest at CNY -64.44 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 11.98 MM has Grown at 43.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 112.35 % 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

Interest

Highest at CNY 11.98 MM

in the last five periods and Increased by 43.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)