Nanjing Red Sun Co., Ltd. (000525) 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

Nanjing Red Sun Co., Ltd.

Why is Nanjing Red Sun Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -5.41% and Operating profit at 15.88% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET SALES(HY) At CNY 1,472.74 MM has Grown at -20.39%
OPERATING CASH FLOW(Y) Lowest at CNY 284.08 MM
PRE-TAX PROFIT(Q) At CNY -63.28 MM has Fallen at -92.78%

With ROE of 4.30%, it has a fair valuation with a 2.97 Price to Book Value

Over the past year, while the stock has generated a return of -4.15%, its profits have risen by 127.1% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.15% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Chemicals & Petrochemicals)

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

Is Nanjing Red Sun Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nanjing Red Sun Co., Ltd.

-4.15%

-0.17

44.85%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.41%

EBIT Growth (5y)

15.88%

EBIT to Interest (avg)

1.05

Debt to EBITDA (avg)

16.29

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.68

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.34%

ROE (avg)

17.27%

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

2.97

EV to EBIT

43.39

EV to EBITDA

14.33

EV to Capital Employed

2.43

EV to Sales

3.19

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

5.59%

ROE (Latest)

4.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.96 times

NET SALES(Q)

At CNY 867.24 MM has Grown at 23.31%

-26What is not working for the Company

NET SALES(HY)

At CNY 1,472.74 MM has Grown at -20.39%

OPERATING CASH FLOW(Y)

Lowest at CNY 284.08 MM

PRE-TAX PROFIT(Q)

At CNY -63.28 MM has Fallen at -92.78%

NET PROFIT(Q)

At CNY -54.27 MM has Fallen at -245.94%

RAW MATERIAL COST(Y)

Grown by 62.18% (YoY

CASH AND EQV(HY)

Lowest at CNY 282.69 MM

Here's what is working for Nanjing Red Sun Co., Ltd.

Net Sales

At CNY 867.24 MM has Grown at 23.31%

over average net sales of the previous four periods of CNY 703.29 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.96 times

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 Nanjing Red Sun Co., Ltd.

Pre-Tax Profit

At CNY -63.28 MM has Fallen at -92.78%

over average net sales of the previous four periods of CNY -32.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -54.27 MM has Fallen at -245.94%

over average net sales of the previous four periods of CNY 37.18 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 284.08 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 282.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 62.18% (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