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. ?

With a growth in Net Sales of 165.77%, the company declared Very Positive results in Mar 26

NET SALES(Q) At CNY 87.54 MM has Grown at 165.77%
RAW MATERIAL COST(Y) Fallen by -9.49% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 1.94 times

With ROE of 4.13%, it has a attractive valuation with a 2.13 Price to Book Value

Over the past year, while the stock has generated a return of 99.38%, its profits have risen by 16.2% ; the PEG ratio of the company is 3.2

Market Beating Performance

The stock has generated a return of 99.38% in the last 1 year, much higher than market (China Shanghai Composite) returns of 19.22%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

88.65%

1.31

70.58%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.17%

EBIT Growth (5y)

23.30%

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

33.77%

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

2.13

EV to EBIT

59.56

EV to EBITDA

46.96

EV to Capital Employed

3.42

EV to Sales

4.00

PEG Ratio

3.18

Dividend Yield

ROCE (Latest)

5.73%

ROE (Latest)

4.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

23What is working for the Company

NET SALES(Q)

At CNY 87.54 MM has Grown at 165.77%

RAW MATERIAL COST(Y)

Fallen by -9.49% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.94 times

PRE-TAX PROFIT(Q)

At CNY -2.18 MM has Grown at 79.48%

NET PROFIT(Q)

At CNY -0.55 MM has Grown at 92.55%

-12What is not working for the Company

INTEREST(HY)

At CNY 0.41 MM has Grown at 4,970.04%

DEBT-EQUITY RATIO (HY)

Highest at -53.1 %

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

Net Sales

At CNY 87.54 MM has Grown at 165.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -2.18 MM has Grown at 79.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.55 MM has Grown at 92.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

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 -9.49% (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 0.41 MM has Grown at 4,970.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -53.1 %

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