Why is Rainbow Digital Commercial Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 44.42%
- Poor long term growth as Net Sales has grown by an annual rate of -1.19% and Operating profit at -173.95% over the last 5 years
- The company is Net-Debt Free
2
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 322.08
- CASH AND EQV(HY) Lowest at CNY 3,358.19 MM
- OPERATING PROFIT(Q) Lowest at CNY 124.19 MM
3
With ROE of 1.94%, it has a expensive valuation with a 1.35 Price to Book Value
- Over the past year, while the stock has generated a return of -9.13%, its profits have risen by 20.9% ; the PEG ratio of the company is 3.3
- At the current price, the company has a high dividend yield of 1.5
4
Below par performance in long term as well as near term
- Along with generating -9.13% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rainbow Digital Commercial Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rainbow Digital Commercial Co., Ltd.
-100.0%
0.12
28.68%
China Shanghai Composite
20.18%
1.55
13.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.19%
EBIT Growth (5y)
-173.95%
EBIT to Interest (avg)
0.93
Debt to EBITDA (avg)
0.39
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
1.79
Tax Ratio
23.17%
Dividend Payout Ratio
98.31%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
44.42%
ROE (avg)
3.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
70
Industry P/E
Price to Book Value
1.35
EV to EBIT
-102.67
EV to EBITDA
5.85
EV to Capital Employed
1.24
EV to Sales
0.66
PEG Ratio
3.33
Dividend Yield
1.46%
ROCE (Latest)
-1.21%
ROE (Latest)
1.94%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
7What is working for the Company
NET PROFIT(HY)
Higher at CNY 168.72 MM
RAW MATERIAL COST(Y)
Fallen by -20.53% (YoY
PRE-TAX PROFIT(Q)
Highest at CNY 204.84 MM
-5What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 322.08
CASH AND EQV(HY)
Lowest at CNY 3,358.19 MM
OPERATING PROFIT(Q)
Lowest at CNY 124.19 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.92 %
Here's what is working for Rainbow Digital Commercial Co., Ltd.
Net Profit
Higher at CNY 168.72 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Net Profit
At CNY 168.72 MM has Grown at 54.26%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 204.84 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Raw Material Cost
Fallen by -20.53% (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 Rainbow Digital Commercial Co., Ltd.
Interest Coverage Ratio
Lowest at 322.08
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 124.19 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 3.92 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at CNY 3,358.19 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






