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

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 23.28% and Operating profit at 2.67% over the last 5 years

With a growth in Net Sales of 111.42%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 4 consecutive quarters
ROCE(HY) Highest at 16.66%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -33.08% (YoY)

With ROE of 17.55%, it has a expensive valuation with a 15.63 Price to Book Value

Over the past year, while the stock has generated a return of 51.53%, its profits have risen by 111.5%
At the current price, the company has a high dividend yield of 0.6

Market Beating Performance

The stock has generated a return of 51.53% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.67%

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.

51.53%

4.37

69.01%

China Shanghai Composite

16.67%

1.11

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.28%

EBIT Growth (5y)

2.67%

EBIT to Interest (avg)

30.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.29

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

15.63

EV to EBIT

74.38

EV to EBITDA

63.79

EV to Capital Employed

17.55

EV to Sales

5.76

PEG Ratio

Dividend Yield

0.62%

ROCE (Latest)

23.60%

ROE (Latest)

17.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

26What is working for the Company

ROCE(HY)

Highest at 16.66%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -33.08% (YoY

CASH AND EQV(HY)

Highest at CNY 1,245.69 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 13.28 times

NET SALES(Q)

Highest at CNY 819.44 MM

NET PROFIT(Q)

At CNY 32.51 MM has Grown at 73.21%

-14What is not working for the Company

INTEREST(HY)

At CNY 4.64 MM has Grown at 247.35%

DEBT-EQUITY RATIO (HY)

Highest at 39.49 %

OPERATING PROFIT(Q)

Lowest at CNY 14.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.71 %

PRE-TAX PROFIT(Q)

Lowest at CNY 10.66 MM

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

Net Sales

At CNY 819.44 MM has Grown at 124.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 819.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 32.51 MM has Grown at 73.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,245.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 13.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -33.08% (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 4.64 MM has Grown at 247.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 10.66 MM has Fallen at -43.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 14.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 10.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 39.49 %

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