Richinfo Technology Co., Ltd. (300634) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Richinfo Technology Co., Ltd.

Why is Richinfo Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 17.68% and Operating profit at 7.79% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 2,921.1
DEBTORS TURNOVER RATIO(HY) Lowest at 1.73 times
NET SALES(Q) Lowest at CNY 331.55 MM

Below par performance in long term as well as near term

Along with generating -12.79% 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 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 Software Products)

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

Is Richinfo Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Richinfo Technology Co., Ltd.

-16.37%

0.54

54.75%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.68%

EBIT Growth (5y)

7.79%

EBIT to Interest (avg)

43.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.58

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

27.88%

Pledged Shares

Institutional Holding

ROCE (avg)

13.31%

ROE (avg)

8.78%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.34

EV to EBIT

47.09

EV to EBITDA

35.41

EV to Capital Employed

5.78

EV to Sales

5.16

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

12.28%

ROE (Latest)

6.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 289.03 MM

RAW MATERIAL COST(Y)

Fallen by -0.55% (YoY

CASH AND EQV(HY)

Highest at CNY 3,265.74 MM

DEBT-EQUITY RATIO (HY)

Lowest at -50.77 %

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,921.1

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.73 times

NET SALES(Q)

Lowest at CNY 331.55 MM

OPERATING PROFIT(Q)

Lowest at CNY 26.42 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 28.55 MM

NET PROFIT(Q)

Lowest at CNY 32.53 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Richinfo Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 289.03 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)

Cash and Eqv

Highest at CNY 3,265.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -50.77 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.55% (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 Richinfo Technology Co., Ltd.

Net Sales

At CNY 331.55 MM has Fallen at -27.53%

over average net sales of the previous four periods of CNY 457.49 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 2,921.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 28.55 MM has Fallen at -52.91%

over average net sales of the previous four periods of CNY 60.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.53 MM has Fallen at -47.09%

over average net sales of the previous four periods of CNY 61.48 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 331.55 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 26.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 28.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 32.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio