Rongan Property Co., Ltd. (000517) 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

Rongan Property Co., Ltd.

Why is Rongan Property 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 29.80% and Operating profit at -194.65% 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 9.83% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 29.80% and Operating profit at -194.65% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

NET SALES(Q) At CNY 2,606.74 MM has Fallen at -65.99%
PRE-TAX PROFIT(Q) At CNY 39.52 MM has Fallen at -92.18%
NET PROFIT(Q) At CNY 19.12 MM has Fallen at -95.36%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.71%, its profits have fallen by -584%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.71% returns

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 Realty)

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

Is Rongan Property Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rongan Property Co., Ltd.

-21.4%

-0.78

32.29%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.80%

EBIT Growth (5y)

-194.65%

EBIT to Interest (avg)

2.92

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

20.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.92%

ROE (avg)

9.83%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.86

EV to EBIT

-3.53

EV to EBITDA

-3.65

EV to Capital Employed

0.86

EV to Sales

0.21

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.33%

ROE (Latest)

-29.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 0.89%

DEBT-EQUITY RATIO (HY)

Lowest at 2.84 %

-30What is not working for the Company

NET SALES(Q)

At CNY 2,606.74 MM has Fallen at -65.99%

PRE-TAX PROFIT(Q)

At CNY 39.52 MM has Fallen at -92.18%

NET PROFIT(Q)

At CNY 19.12 MM has Fallen at -95.36%

ROCE(HY)

Lowest at -28.62%

RAW MATERIAL COST(Y)

Grown by 11.25% (YoY

CASH AND EQV(HY)

Lowest at CNY 4,269.37 MM

Here's what is working for Rongan Property Co., Ltd.

Inventory Turnover Ratio

Highest at 0.89% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debt-Equity Ratio

Lowest at 2.84 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Rongan Property Co., Ltd.

Net Sales

At CNY 2,606.74 MM has Fallen at -65.99%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 39.52 MM has Fallen at -92.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.12 MM has Fallen at -95.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 2,606.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 4,269.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 11.25% (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

Non Operating Income

Highest at CNY 0.34 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income