Riyue Heavy Industry Co., Ltd. (603218) 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

Riyue Heavy Industry Co., Ltd.

Why is Riyue Heavy Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.91% and Operating profit at -14.68% over the last 5 years

Flat results in Sep 25

NET PROFIT(HY) At CNY 313.29 MM has Grown at -22.66%
INTEREST COVERAGE RATIO(Q) Lowest at 4,054.53
OPERATING PROFIT(Q) Lowest at CNY 144.45 MM

With ROE of 4.45%, it has a fair valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of 4.08%, its profits have fallen by -21.1%
At the current price, the company has a high dividend yield of 2.4

Underperformed the market in the last 1 year

The stock has generated a return of 4.08% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Riyue Heavy Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Riyue Heavy Industry Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Riyue Heavy Industry Co., Ltd.

13.29%

0.76

29.95%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.91%

EBIT Growth (5y)

-14.68%

EBIT to Interest (avg)

37.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.44

Tax Ratio

10.57%

Dividend Payout Ratio

57.19%

Pledged Shares

Institutional Holding

ROCE (avg)

6.67%

ROE (avg)

6.50%

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

1.42

EV to EBIT

36.29

EV to EBITDA

16.14

EV to Capital Employed

1.51

EV to Sales

2.15

PEG Ratio

Dividend Yield

2.43%

ROCE (Latest)

4.15%

ROE (Latest)

4.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 739.64 MM

NET SALES(HY)

At CNY 3,554.81 MM has Grown at 42.93%

RAW MATERIAL COST(Y)

Fallen by -27.7% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.71 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.94 times

-8What is not working for the Company

NET PROFIT(HY)

At CNY 313.29 MM has Grown at -22.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,054.53

OPERATING PROFIT(Q)

Lowest at CNY 144.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.86 %

Here's what is working for Riyue Heavy Industry Co., Ltd.

Net Sales

At CNY 3,554.81 MM has Grown at 42.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 739.64 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)

Inventory Turnover Ratio

Highest at 4.71 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.94 times

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 -27.7% (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 Riyue Heavy Industry Co., Ltd.

Interest Coverage Ratio

Lowest at 4,054.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 313.29 MM has Grown at -22.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 144.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales