Jiangsu Rongtai Industry 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jiangsu Rongtai Industry Co., Ltd.

Why is Jiangsu Rongtai Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 23.81% and Operating profit at 13.16% over the last 5 years

Negative results in Sep 25

INTEREST(Q) At CNY 6.35 MM has Grown at 214.13%
INTEREST COVERAGE RATIO(Q) Lowest at 977.35
INVENTORY TURNOVER RATIO(HY) Lowest at 2.53 times

With ROE of 5.20%, it has a fair valuation with a 3.03 Price to Book Value

Over the past year, while the stock has generated a return of 28.96%, its profits have risen by 15.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Rongtai Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Jiangsu Rongtai Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Rongtai Industry Co., Ltd.

-3.2%

0.66

67.32%

China Shanghai Composite

17.07%

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)

23.81%

EBIT Growth (5y)

13.16%

EBIT to Interest (avg)

16.37

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.58

Tax Ratio

9.62%

Dividend Payout Ratio

12.96%

Pledged Shares

Institutional Holding

ROCE (avg)

6.62%

ROE (avg)

6.73%

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

3.03

EV to EBIT

58.08

EV to EBITDA

25.61

EV to Capital Employed

3.03

EV to Sales

4.46

PEG Ratio

Dividend Yield

ROCE (Latest)

5.21%

ROE (Latest)

5.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 503.35 MM

RAW MATERIAL COST(Y)

Fallen by -4.23% (YoY

NET SALES(Q)

Highest at CNY 754.66 MM

PRE-TAX PROFIT(Q)

Highest at CNY 65.03 MM

-18What is not working for the Company

INTEREST(Q)

At CNY 6.35 MM has Grown at 214.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 977.35

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.53 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.52 times

OPERATING PROFIT(Q)

Lowest at CNY 62.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.22 %

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

Operating Cash Flow

Highest at CNY 503.35 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)

Net Sales

Highest at CNY 754.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 754.66 MM has Grown at 24.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 65.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -4.23% (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 Rongtai Industry Co., Ltd.

Interest

At CNY 6.35 MM has Grown at 214.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 977.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 62.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.53 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 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio