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

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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 -6.95% and Operating profit at 19.86% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -28.17%, the company declared Very Negative results in Mar 25

NET SALES(HY) At CNY 1,139.08 MM has Grown at -19.52%
INTEREST(HY) At CNY 250.98 MM has Grown at 68.55%
OPERATING CASH FLOW(Y) Lowest at CNY 358.46 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.73% 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.

-14.64%

0.04

42.58%

China Shanghai Composite

15.19%

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)

-6.95%

EBIT Growth (5y)

19.86%

EBIT to Interest (avg)

1.05

Debt to EBITDA (avg)

16.29

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.71

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

2.30

EV to EBIT

34.69

EV to EBITDA

11.46

EV to Capital Employed

1.94

EV to Sales

2.55

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

5.59%

ROE (Latest)

4.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

12What is working for the Company

NET PROFIT(HY)

Higher at CNY 388.02 MM

DEBT-EQUITY RATIO (HY)

Lowest at 40.38 %

-25What is not working for the Company

NET SALES(HY)

At CNY 1,139.08 MM has Grown at -19.52%

INTEREST(HY)

At CNY 250.98 MM has Grown at 68.55%

OPERATING CASH FLOW(Y)

Lowest at CNY 358.46 MM

NET PROFIT(Q)

At CNY 26.72 MM has Fallen at -72.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 146.75

CASH AND EQV(HY)

Lowest at CNY 172.94 MM

OPERATING PROFIT(Q)

Lowest at CNY 27.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.25 %

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

Debt-Equity Ratio

Lowest at 40.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Nanjing Red Sun Co., Ltd.

Net Sales

At CNY 1,139.08 MM has Grown at -19.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 250.98 MM has Grown at 68.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 26.72 MM has Fallen at -72.45%

over average net sales of the previous four periods of CNY 96.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 358.46 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)

Interest Coverage Ratio

Lowest at 146.75

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 27.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 172.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents