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

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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 7.91% and Operating profit at -14.10% over the last 5 years

Flat results in Mar 25

INTEREST(Q) At CNY 4.17 MM has Grown at 45.91%
INTEREST COVERAGE RATIO(Q) Lowest at 2,192.59
OPERATING PROFIT MARGIN(Q) Lowest at 7.07 %

With ROE of 4.45%, it has a attractive valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of -3.50%, its profits have fallen by -21.1%
At the current price, the company has a high dividend yield of 2.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.50% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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.

-3.5%

0.50

31.12%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.91%

EBIT Growth (5y)

-14.10%

EBIT to Interest (avg)

37.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.43

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

1.19

EV to EBIT

29.56

EV to EBITDA

13.15

EV to Capital Employed

1.23

EV to Sales

1.76

PEG Ratio

Dividend Yield

2.91%

ROCE (Latest)

4.15%

ROE (Latest)

4.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

10What is working for the Company

NET SALES(9M)

At CNY 4,180.84 MM has Grown at 42.41%

ROCE(HY)

Highest at 6.53%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.66%

-10What is not working for the Company

INTEREST(Q)

At CNY 4.17 MM has Grown at 45.91%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,192.59

OPERATING PROFIT MARGIN(Q)

Lowest at 7.07 %

RAW MATERIAL COST(Y)

Grown by 25.6% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -8.98 %

OPERATING PROFIT(Q)

Lowest at CNY 91.34 MM

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

Net Sales

At CNY 2,792.23 MM has Grown at 54.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 1.66%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Riyue Heavy Industry Co., Ltd.

Interest

At CNY 4.17 MM has Grown at 45.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,192.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 7.07 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 91.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at -8.98 %

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

Raw Material Cost

Grown by 25.6% (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