Jiangsu Rainbow Heavy Industries Co., Ltd. (002483) 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

Jiangsu Rainbow Heavy Industries Co., Ltd.

Why is Jiangsu Rainbow Heavy Industries Co., Ltd. ?

With a fall in Net Profit of -49.84%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At CNY 20.1 MM has Grown at 17.86%
INTEREST COVERAGE RATIO(Q) Lowest at 1,088.87
PRE-TAX PROFIT(Q) At CNY 87.41 MM has Fallen at -50.63%

Below par performance in long term as well as near term

Along with generating -19.53% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Industrial Manufacturing)

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

Is Jiangsu Rainbow Heavy Industries Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Rainbow Heavy Industries Co., Ltd.

-13.51%

0.52

28.84%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.97%

EBIT Growth (5y)

11.11%

EBIT to Interest (avg)

10.58

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

1.29

Tax Ratio

28.40%

Dividend Payout Ratio

36.88%

Pledged Shares

Institutional Holding

ROCE (avg)

19.52%

ROE (avg)

8.29%

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

0.95

EV to EBIT

3.02

EV to EBITDA

2.44

EV to Capital Employed

0.90

EV to Sales

0.29

PEG Ratio

Dividend Yield

3.02%

ROCE (Latest)

29.84%

ROE (Latest)

10.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.96% (YoY

-32What is not working for the Company

NET SALES(Q)

At CNY 1,238.86 MM has Fallen at -22.36%

INTEREST(9M)

At CNY 27.56 MM has Grown at 8.18%

DEBT-EQUITY RATIO (HY)

Highest at -45.48 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.3 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.01 times

OPERATING PROFIT(Q)

Lowest at CNY 116.08 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 66.16 MM

NET PROFIT(Q)

Lowest at CNY 47.53 MM

EPS(Q)

Lowest at CNY 0.05

Here's what is working for Jiangsu Rainbow Heavy Industries Co., Ltd.

Raw Material Cost

Fallen by -1.96% (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 Jiangsu Rainbow Heavy Industries Co., Ltd.

Net Sales

At CNY 1,238.86 MM has Fallen at -22.36%

over average net sales of the previous four periods of CNY 1,595.68 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 66.16 MM has Fallen at -60.59%

over average net sales of the previous four periods of CNY 167.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 47.53 MM has Fallen at -50.35%

over average net sales of the previous four periods of CNY 95.72 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 27.56 MM has Grown at 8.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 116.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 66.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 47.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -45.48 %

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

Inventory Turnover Ratio

Lowest at 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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