ScoreWhy 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 -19.37%, 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 -19.37% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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
29.40%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.19%
EBIT Growth (5y)
-173.95%
EBIT to Interest (avg)
0.27
Debt to EBITDA (avg)
0.59
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
1.79
Tax Ratio
43.18%
Dividend Payout Ratio
98.31%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.71%
ROE (avg)
3.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
1.20
EV to EBIT
-94.24
EV to EBITDA
5.37
EV to Capital Employed
1.14
EV to Sales
0.60
PEG Ratio
2.96
Dividend Yield
1.64%
ROCE (Latest)
-1.21%
ROE (Latest)
1.94%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET PROFIT(HY)
Higher at CNY 113.38 MM
RAW MATERIAL COST(Y)
Fallen by -13.66% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 128.62 %
-12What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY -21.13 MM has Fallen at -52.76%
NET PROFIT(Q)
At CNY -34.69 MM has Fallen at -1,350.6%
ROCE(HY)
Lowest at 1.05%
DEBTORS TURNOVER RATIO(HY)
Lowest at 31.72 times
NET SALES(Q)
Lowest at CNY 2,582.98 MM
Here's what is working for Rainbow Digital Commercial Co., Ltd.
Debt-Equity Ratio
Lowest at 128.62 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -13.66% (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.
Pre-Tax Profit
At CNY -21.13 MM has Fallen at -52.76%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -34.69 MM has Fallen at -1,350.6%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Lowest at CNY 2,582.98 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debtors Turnover Ratio
Lowest at 31.72 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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