Rizhao Port Co., Ltd. (600017) 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

Rizhao Port Co., Ltd.

Why is Rizhao Port Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.47% and Operating profit at 1.71% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.60% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.47% and Operating profit at 1.71% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 2,453.67 MM
INTEREST COVERAGE RATIO(Q) Lowest at 240.45
RAW MATERIAL COST(Y) Grown by 8.27% (YoY)

With ROE of 4.82%, it has a very attractive valuation with a 0.70 Price to Book Value

Over the past year, while the stock has generated a return of -9.01%, its profits have fallen by -1.4%
At the current price, the company has a high dividend yield of 2.7

Below par performance in long term as well as near term

Along with generating -9.01% 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 hold?

Overall Portfolio exposure to Rizhao Port Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Rizhao Port Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rizhao Port Co., Ltd.

-100.0%

0.30

27.03%

China Shanghai Composite

15.19%

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)

7.47%

EBIT Growth (5y)

1.71%

EBIT to Interest (avg)

2.96

Debt to EBITDA (avg)

4.27

Net Debt to Equity (avg)

1.07

Sales to Capital Employed (avg)

0.29

Tax Ratio

22.07%

Dividend Payout Ratio

40.39%

Pledged Shares

Institutional Holding

ROCE (avg)

5.62%

ROE (avg)

5.60%

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

0.70

EV to EBIT

19.27

EV to EBITDA

9.74

EV to Capital Employed

0.86

EV to Sales

3.13

PEG Ratio

Dividend Yield

2.73%

ROCE (Latest)

4.44%

ROE (Latest)

4.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,453.67 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 240.45

RAW MATERIAL COST(Y)

Grown by 8.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 128.23 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.91%

NET SALES(Q)

Lowest at CNY 1,804.01 MM

OPERATING PROFIT(Q)

Lowest at CNY 324.55 MM

Here's what is not working for Rizhao Port Co., Ltd.

Net Sales

At CNY 1,804.01 MM has Fallen at -13.91%

over average net sales of the previous four periods of CNY 2,095.42 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 240.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 2,453.67 MM

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 1,804.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 324.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 128.23 %

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

Inventory Turnover Ratio

Lowest at 33.91%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.27% (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