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Red Avenue New Materials Group Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE1000036G1
CNY
43.22
-2.13 (-4.7%)

Dec 04

SHG

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  • Price Points
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  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Red Avenue New Materials Group Co., Ltd.
Why is Red Avenue New Materials Group Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
  • Poor long term growth as Net Sales has grown by an annual rate of 10.56% and Operating profit at 4.24% over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at times
  • The company has been able to generate a Return on Equity (avg) of 12.98% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 10.56% and Operating profit at 4.24% over the last 5 years
3
Negative results in Mar 25
  • INTEREST(HY) At CNY 55.06 MM has Grown at 26.43%
  • DEBT-EQUITY RATIO (HY) Highest at 85.96 %
4
With ROE of 17.02%, it has a very expensive valuation with a 6.80 Price to Book Value
  • Over the past year, while the stock has generated a return of 20.02%, its profits have risen by 11.8% ; the PEG ratio of the company is 4
  • At the current price, the company has a high dividend yield of 2
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. 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 Specialty Chemicals)

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

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.
20.02%
0.92
37.82%
China Shanghai Composite
14.77%
1.01
14.58%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
10.56%
EBIT Growth (5y)
4.24%
EBIT to Interest (avg)
2.99
Debt to EBITDA (avg)
6.02
Net Debt to Equity (avg)
0.85
Sales to Capital Employed (avg)
0.45
Tax Ratio
8.87%
Dividend Payout Ratio
86.51%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.79%
ROE (avg)
12.98%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
40
Industry P/E
Price to Book Value
6.80
EV to EBIT
94.15
EV to EBITDA
56.68
EV to Capital Employed
3.94
EV to Sales
7.72
PEG Ratio
3.98
Dividend Yield
1.98%
ROCE (Latest)
4.18%
ROE (Latest)
17.02%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 307.41 MM

ROCE(HY)

Highest at 15.46%

RAW MATERIAL COST(Y)

Fallen by -9.07% (YoY

CASH AND EQV(HY)

Highest at CNY 2,427.79 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.67%

NET SALES(Q)

Highest at CNY 852.78 MM

-9What is not working for the Company
INTEREST(HY)

At CNY 55.06 MM has Grown at 26.43%

DEBT-EQUITY RATIO (HY)

Highest at 85.96 %

Here's what is working for Red Avenue New Materials Group Co., Ltd.
Operating Cash Flow
Highest at CNY 307.41 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales
Highest at CNY 852.78 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv
Highest at CNY 2,427.79 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 2.67%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -9.07% (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 Red Avenue New Materials Group Co., Ltd.
Interest
At CNY 55.06 MM has Grown at 26.43%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 85.96 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

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