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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Rongtai Industry Co., Ltd.

Why is Guangdong Rongtai Industry Co., Ltd. ?

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)

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

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

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

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 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.

24.34%

2.64

68.24%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.48%

EBIT Growth (5y)

14.10%

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)

0.33

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

NA (Loss Making)

Industry P/E

Price to Book Value

10.63

EV to EBIT

-113.90

EV to EBITDA

1337.19

EV to Capital Employed

4.57

EV to Sales

16.73

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.02%

ROE (Latest)

-16.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

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

7What is working for the Company

NET SALES(Q)

Highest at CNY 124.53 MM

-32What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -30.46 MM has Fallen at -877.8%

NET PROFIT(Q)

At CNY -31.86 MM has Fallen at -564.46%

ROCE(HY)

Lowest at -15.26%

DEBT-EQUITY RATIO (HY)

Highest at 295.47 %

RAW MATERIAL COST(Y)

Grown by 22.22% (YoY

INTEREST(Q)

Highest at CNY 19.82 MM

OPERATING PROFIT(Q)

Lowest at CNY -18.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -14.68 %

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

Net Sales

Highest at CNY 124.53 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Guangdong Rongtai Industry Co., Ltd.

Pre-Tax Profit

At CNY -30.46 MM has Fallen at -877.8%

over average net sales of the previous four periods of CNY -3.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -31.86 MM has Fallen at -564.46%

over average net sales of the previous four periods of CNY -4.8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 19.82 MM has Grown at 20.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 295.47 % 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 19.82 MM

in the last five periods and Increased by 20.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -18.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -14.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 22.22% (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