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

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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 21.49% and Operating profit at 5.79% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 13.32 MM has Grown at 215.6%
ROCE(HY) Lowest at 5.38%
INTEREST COVERAGE RATIO(Q) Lowest at 694.1

With ROE of 5.20%, it has a expensive valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of 71.02%, its profits have risen by 15.1%

Market Beating Performance

The stock has generated a return of 71.02% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.61%

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.

71.51%

0.87

71.15%

China Shanghai Composite

15.44%

1.01

14.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.49%

EBIT Growth (5y)

5.79%

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

2.78

EV to EBIT

53.41

EV to EBITDA

23.55

EV to Capital Employed

2.78

EV to Sales

4.10

PEG Ratio

Dividend Yield

ROCE (Latest)

5.21%

ROE (Latest)

5.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 374.73 MM

RAW MATERIAL COST(Y)

Fallen by -10.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 0.32 %

NET SALES(Q)

Highest at CNY 658.14 MM

PRE-TAX PROFIT(Q)

Highest at CNY 59.82 MM

NET PROFIT(Q)

Highest at CNY 47.93 MM

EPS(Q)

Highest at CNY 0.2

-14What is not working for the Company

INTEREST(HY)

At CNY 13.32 MM has Grown at 215.6%

ROCE(HY)

Lowest at 5.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 694.1

OPERATING PROFIT(Q)

Lowest at CNY 47.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.15 %

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

Operating Cash Flow

Highest at CNY 374.73 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 658.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 658.14 MM has Grown at 29.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 59.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 47.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 0.32 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -10.39% (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 13.32 MM has Grown at 215.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 694.1

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 47.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales