HONG RI DA Technology Co., Ltd. () 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

HONG RI DA Technology Co., Ltd.

Why is HONG RI DA Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.12%

The company has been able to generate a Return on Capital Employed (avg) of 1.12% 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 22.51% and Operating profit at -751.23% 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 2.26% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 22.51% and Operating profit at -751.23% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

The company has declared negative results in Sep 24 after 2 consecutive negative quarters
NET PROFIT(9M) At CNY -37.13 MM has Grown at -221.27%
INTEREST(9M) At CNY 11.42 MM has Grown at 17.9%
PRE-TAX PROFIT(Q) At CNY -16.45 MM has Fallen at -396.64%

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 Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HONG RI DA Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HONG RI DA Technology Co., Ltd.

126.15%

2.72

51.34%

China Shanghai Composite

14.03%

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)

22.51%

EBIT Growth (5y)

-751.23%

EBIT to Interest (avg)

0.09

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.46

Tax Ratio

39.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.12%

ROE (avg)

2.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.28

EV to EBIT

-59.27

EV to EBITDA

52.25

EV to Capital Employed

2.03

EV to Sales

3.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.43%

ROE (Latest)

-3.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 87.36 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.16%

-25What is not working for the Company

NET PROFIT(9M)

At CNY -37.13 MM has Grown at -221.27%

INTEREST(9M)

At CNY 11.42 MM has Grown at 17.9%

PRE-TAX PROFIT(Q)

At CNY -16.45 MM has Fallen at -396.64%

ROCE(HY)

Lowest at -2.35%

DEBT-EQUITY RATIO (HY)

Highest at 25.26 %

RAW MATERIAL COST(Y)

Grown by 17.55% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -19.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -12.43 %

Here's what is working for HONG RI DA Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 87.36 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 4.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for HONG RI DA Technology Co., Ltd.

Pre-Tax Profit

At CNY -16.45 MM has Fallen at -396.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.61 MM has Fallen at -400.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 11.42 MM has Grown at 17.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 25.26 % 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

Operating Profit

Lowest at CNY -19.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -12.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 17.55% (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