Rongcheer Industrial Technology (Suzhou) Co., Ltd. () 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

Rongcheer Industrial Technology (Suzhou) Co., Ltd.

Why is Rongcheer Industrial Technology (Suzhou) Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 29.60% and Operating profit at -1.00% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.83% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 29.60% and Operating profit at -1.00% over the last 5 years

Negative results in Sep 25

NET PROFIT(HY) At CNY 12.62 MM has Grown at -46.06%
INTEREST(HY) At CNY 0.39 MM has Grown at 151.94%
NET SALES(HY) At CNY 176.19 MM has Grown at -10.93%

With ROE of 2.26%, it has a attractive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of 85.58%, its profits have risen by 2% ; the PEG ratio of the company is 21.3

Market Beating Performance

The stock has generated a return of 85.58% in the last 1 year, much higher than market (China Shanghai Composite) returns of 26.42%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rongcheer Industrial Technology (Suzhou) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Rongcheer Industrial Technology (Suzhou) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rongcheer Industrial Technology (Suzhou) Co., Ltd.

85.58%

2.34

53.17%

China Shanghai Composite

26.42%

2.04

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.60%

EBIT Growth (5y)

-1.00%

EBIT to Interest (avg)

16.35

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

41.58%

Pledged Shares

Institutional Holding

ROCE (avg)

4.84%

ROE (avg)

3.83%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.75

EV to EBIT

113.62

EV to EBITDA

12.65

EV to Capital Employed

0.34

EV to Sales

0.42

PEG Ratio

21.26

Dividend Yield

ROCE (Latest)

0.30%

ROE (Latest)

2.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 10.31 MM has Grown at 200.65%

NET PROFIT(Q)

At CNY 10.39 MM has Grown at 130.46%

RAW MATERIAL COST(Y)

Fallen by -11.34% (YoY

-17What is not working for the Company

NET PROFIT(HY)

At CNY 12.62 MM has Grown at -46.06%

INTEREST(HY)

At CNY 0.39 MM has Grown at 151.94%

NET SALES(HY)

At CNY 176.19 MM has Grown at -10.93%

DEBT-EQUITY RATIO (HY)

Highest at -54.76 %

Here's what is working for Rongcheer Industrial Technology (Suzhou) Co., Ltd.

Pre-Tax Profit

At CNY 10.31 MM has Grown at 200.65%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.39 MM has Grown at 130.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -11.34% (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 Rongcheer Industrial Technology (Suzhou) Co., Ltd.

Interest

At CNY 0.39 MM has Grown at 151.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 176.19 MM has Grown at -10.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -54.76 %

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