Guangzhou Ruoyuchen Technology Co., Ltd. (003010) 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

Guangzhou Ruoyuchen Technology Co., Ltd.

Why is Guangzhou Ruoyuchen Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 18.10% and Operating profit at 19.90% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 305.46 MM
ROCE(HY) Highest at 11.37%
NET SALES(Q) At CNY 572.73 MM has Grown at 54.07%

With ROE of 17.55%, it has a expensive valuation with a 8.82 Price to Book Value

Over the past year, while the stock has generated a return of 327.10%, its profits have risen by 111.5%
At the current price, the company has a high dividend yield of 1.1

Consistent Returns over the last 3 years

Along with generating 327.10% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Ruoyuchen Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is Guangzhou Ruoyuchen Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Ruoyuchen Technology Co., Ltd.

194.39%

4.94

79.20%

China Shanghai Composite

14.77%

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)

18.10%

EBIT Growth (5y)

19.90%

EBIT to Interest (avg)

30.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.22

Tax Ratio

15.82%

Dividend Payout Ratio

54.46%

Pledged Shares

Institutional Holding

ROCE (avg)

10.95%

ROE (avg)

6.26%

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

8.82

EV to EBIT

41.73

EV to EBITDA

35.79

EV to Capital Employed

9.85

EV to Sales

3.23

PEG Ratio

Dividend Yield

1.10%

ROCE (Latest)

23.60%

ROE (Latest)

17.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 305.46 MM

ROCE(HY)

Highest at 11.37%

NET SALES(Q)

At CNY 572.73 MM has Grown at 54.07%

RAW MATERIAL COST(Y)

Fallen by -133.33% (YoY

PRE-TAX PROFIT(Q)

At CNY 25.32 MM has Grown at 96.01%

NET PROFIT(Q)

At CNY 25.3 MM has Grown at 97.36%

-8What is not working for the Company

INTEREST(HY)

At CNY 3.49 MM has Grown at 45.36%

Here's what is working for Guangzhou Ruoyuchen Technology Co., Ltd.

Net Sales

At CNY 572.73 MM has Grown at 54.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 305.46 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 25.32 MM has Grown at 96.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.3 MM has Grown at 97.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -133.33% (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 Guangzhou Ruoyuchen Technology Co., Ltd.

Interest

At CNY 3.49 MM has Grown at 45.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)