ScoreWhy is Red Avenue New Materials Group Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.79%
- The company has been able to generate a Return on Capital Employed (avg) of 4.79% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 10.85% and Operating profit at -4.92% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 12.98% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.85% and Operating profit at -4.92% over the last 5 years
4
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at CNY 455.25 MM
- NET SALES(Q) Highest at CNY 1,087.38 MM
- INTEREST COVERAGE RATIO(Q) Highest at 714.27
5
With ROE of 13.92%, it has a very expensive valuation with a 12.24 Price to Book Value
- Over the past year, while the stock has generated a return of 99.31%, its profits have risen by 13.1% ; the PEG ratio of the company is 9.1
- At the current price, the company has a high dividend yield of 0.6
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Red Avenue New Materials Group Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Red Avenue New Materials Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Red Avenue New Materials Group Co., Ltd.
88.91%
1.94
64.17%
China Shanghai Composite
3.23%
0.23
14.72%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.85%
EBIT Growth (5y)
-4.92%
EBIT to Interest (avg)
2.31
Debt to EBITDA (avg)
6.71
Net Debt to Equity (avg)
0.85
Sales to Capital Employed (avg)
0.45
Tax Ratio
11.38%
Dividend Payout Ratio
53.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.52%
ROE (avg)
12.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
88
Industry P/E
Price to Book Value
12.24
EV to EBIT
197.11
EV to EBITDA
127.36
EV to Capital Employed
7.72
EV to Sales
15.40
PEG Ratio
9.13
Dividend Yield
0.56%
ROCE (Latest)
3.92%
ROE (Latest)
13.92%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 455.25 MM
NET SALES(Q)
Highest at CNY 1,087.38 MM
INTEREST COVERAGE RATIO(Q)
Highest at 714.27
DEBTORS TURNOVER RATIO(HY)
Highest at 2.75 times
OPERATING PROFIT(Q)
Highest at CNY 168.91 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.53 %
PRE-TAX PROFIT(Q)
Highest at CNY 120.81 MM
NET PROFIT(Q)
Highest at CNY 216.68 MM
EPS(Q)
Highest at CNY 0.34
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.93% (YoY
Here's what is working for Red Avenue New Materials Group Co., Ltd.
Net Sales
Highest at CNY 1,087.38 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Interest Coverage Ratio
Highest at 714.27
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at CNY 455.25 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 1,087.38 MM has Grown at 20.1%
over average net sales of the previous four periods of CNY 905.38 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 168.91 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 15.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY 120.81 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 120.81 MM has Grown at 102.88%
over average net sales of the previous four periods of CNY 59.55 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 216.68 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.34
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Highest at 2.75 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Red Avenue New Materials Group Co., Ltd.
Raw Material Cost
Grown by 5.93% (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
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