Risuntek Inc. (002981) 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

Risuntek Inc.

Why is Risuntek Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.89% and Operating profit at 12.13% over the last 5 years

With a fall in Net Sales of -6.99%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
NET SALES(HY) At CNY 732.06 MM has Grown at -20.57%
ROCE(HY) Lowest at 4.67%
INTEREST COVERAGE RATIO(Q) Lowest at 177.3

With ROE of 7.67%, it has a very expensive valuation with a 0.63 Price to Book Value

Over the past year, while the stock has generated a return of -25.43%, its profits have fallen by -35.4%
At the current price, the company has a high dividend yield of 1.5

Below par performance in long term as well as near term

Along with generating -25.43% 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 Electronics & Appliances)

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

Is Risuntek Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Risuntek Inc.

-23.01%

0.44

48.97%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.89%

EBIT Growth (5y)

12.13%

EBIT to Interest (avg)

15.60

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.49

Tax Ratio

6.38%

Dividend Payout Ratio

30.93%

Pledged Shares

Institutional Holding

ROCE (avg)

8.27%

ROE (avg)

7.64%

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

2.39

EV to EBIT

24.17

EV to EBITDA

16.61

EV to Capital Employed

2.48

EV to Sales

1.38

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

10.24%

ROE (Latest)

7.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 163.24 MM

-22What is not working for the Company

NET SALES(9M)

At CNY 1,166.54 MM has Grown at -16.59%

PRE-TAX PROFIT(Q)

At CNY 6.91 MM has Fallen at -78.53%

NET PROFIT(Q)

At CNY 10.49 MM has Fallen at -66.47%

ROCE(HY)

Lowest at 2.75%

RAW MATERIAL COST(Y)

Grown by 24.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.61 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.94 times

Here's what is working for Risuntek Inc.

Operating Cash Flow

Highest at CNY 163.24 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)

Here's what is not working for Risuntek Inc.

Pre-Tax Profit

At CNY 6.91 MM has Fallen at -78.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.49 MM has Fallen at -66.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,166.54 MM has Grown at -16.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 4.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.02% (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