Rendong Holdings Co., Ltd. (002647) 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

Rendong Holdings Co., Ltd.

Why is Rendong Holdings Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -18.77% and Operating profit at -212.39% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY -234.8 MM has Grown at -41.59%
OPERATING CASH FLOW(Y) Lowest at CNY 29.44 MM
NET SALES(Q) At CNY 200.58 MM has Fallen at -30.45%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.87%, its profits have fallen by -48.2%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.87% returns

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 Commercial Services & Supplies)

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

Is Rendong Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rendong Holdings Co., Ltd.

7.27%

2.22

43.73%

China Shanghai Composite

15.44%

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)

-18.77%

EBIT Growth (5y)

-212.39%

EBIT to Interest (avg)

-0.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-4.08

Sales to Capital Employed (avg)

2.08

Tax Ratio

3.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

7.86%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

6.51

EV to EBIT

-0.77

EV to EBITDA

-34.20

EV to Capital Employed

-0.01

EV to Sales

0.04

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-57.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

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

14What is working for the Company

NET PROFIT(Q)

At CNY 484.91 MM has Grown at 332.85%

RAW MATERIAL COST(Y)

Fallen by -51.69% (YoY

CASH AND EQV(HY)

Highest at CNY 6,668.83 MM

PRE-TAX PROFIT(Q)

Highest at CNY 490.97 MM

EPS(Q)

Highest at CNY 0.43

-28What is not working for the Company

NET PROFIT(9M)

At CNY -234.8 MM has Grown at -41.59%

OPERATING CASH FLOW(Y)

Lowest at CNY 29.44 MM

NET SALES(Q)

At CNY 200.58 MM has Fallen at -30.45%

DEBT-EQUITY RATIO (HY)

Highest at -407.6 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.13%

Here's what is working for Rendong Holdings Co., Ltd.

Pre-Tax Profit

At CNY 490.97 MM has Grown at 337.71%

over average net sales of the previous four periods of CNY -206.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 484.91 MM has Grown at 332.85%

over average net sales of the previous four periods of CNY -208.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 490.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 484.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 6,668.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -51.69% (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 Rendong Holdings Co., Ltd.

Net Sales

At CNY 200.58 MM has Fallen at -30.45%

over average net sales of the previous four periods of CNY 288.41 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 29.44 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)

Net Sales

Lowest at CNY 200.58 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -407.6 %

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

Debtors Turnover Ratio

Lowest at 8.13%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio