RongFa Nuclear Equipment Co., Ltd. (002366) 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

RongFa Nuclear Equipment Co., Ltd.

Why is RongFa Nuclear Equipment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

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 19.89% and Operating profit at 13.08% 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 2.64% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -312.92%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At CNY 11.56 MM has Grown at 79.36%
ROCE(HY) Lowest at -1.58%
DEBT-EQUITY RATIO (HY) Highest at 32.97 %

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 Ferrous Metals)

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

Is RongFa Nuclear Equipment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

RongFa Nuclear Equipment Co., Ltd.

41.56%

1.46

58.49%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.89%

EBIT Growth (5y)

13.08%

EBIT to Interest (avg)

-4.87

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.14

Tax Ratio

26.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

2.64%

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

2.84

EV to EBIT

-348.44

EV to EBITDA

180.83

EV to Capital Employed

2.46

EV to Sales

15.73

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.70%

ROE (Latest)

-1.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -288.77 MM

NET SALES(Q)

At CNY 284.71 MM has Grown at 23.59%

-32What is not working for the Company

INTEREST(HY)

At CNY 11.56 MM has Grown at 79.36%

ROCE(HY)

Lowest at -1.58%

DEBT-EQUITY RATIO (HY)

Highest at 32.97 %

RAW MATERIAL COST(Y)

Grown by 57.48% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -42.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -14.79 %

PRE-TAX PROFIT(Q)

Lowest at CNY -41.28 MM

NET PROFIT(Q)

Lowest at CNY -42.59 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for RongFa Nuclear Equipment Co., Ltd.

Operating Cash Flow

Highest at CNY -288.77 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 284.71 MM has Grown at 23.59%

over average net sales of the previous four periods of CNY 230.36 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for RongFa Nuclear Equipment Co., Ltd.

Interest

At CNY 11.56 MM has Grown at 79.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -41.28 MM has Fallen at -112.66%

over average net sales of the previous four periods of CNY -19.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -42.59 MM has Fallen at -269.32%

over average net sales of the previous four periods of CNY -11.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 32.97 % and Grown

In each half year 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

Operating Profit

Lowest at CNY -42.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -14.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -41.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -42.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 57.48% (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