Why is Rongfeng Holding Group Co., Ltd. ?
1
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
2
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 17.08% and Operating profit at -323.39% 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 5.90% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 17.08% and Operating profit at -323.39% over the last 5 years
- NET SALES(Q) At CNY 79.23 MM has Grown at 104.13%
- RAW MATERIAL COST(Y) Fallen by -89.42% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 0.33%
4
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 1.63%, its profits have fallen by -823.2%
How much should you hold?
- Overall Portfolio exposure to Rongfeng Holding Group Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rongfeng Holding Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rongfeng Holding Group Co., Ltd.
24.81%
1.02
57.69%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
17.08%
EBIT Growth (5y)
-323.39%
EBIT to Interest (avg)
-5.68
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
0.17
Tax Ratio
0.16%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
5.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.89
EV to EBIT
-3.99
EV to EBITDA
-4.33
EV to Capital Employed
1.78
EV to Sales
5.67
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-44.67%
ROE (Latest)
-52.93%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
21What is working for the Company
NET SALES(Q)
At CNY 79.23 MM has Grown at 104.13%
RAW MATERIAL COST(Y)
Fallen by -89.42% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 0.33%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.68%
PRE-TAX PROFIT(Q)
At CNY -14.68 MM has Grown at 84.03%
NET PROFIT(Q)
At CNY -14.6 MM has Grown at 84.12%
-11What is not working for the Company
NET PROFIT(HY)
At CNY -348.05 MM has Grown at -1,448.32%
ROCE(HY)
Lowest at -41.51%
DEBT-EQUITY RATIO
(HY)
Highest at 14.95 %
Here's what is working for Rongfeng Holding Group Co., Ltd.
Net Sales
At CNY 79.23 MM has Grown at 104.13%
over average net sales of the previous four periods of CNY 38.81 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -14.68 MM has Grown at 84.03%
over average net sales of the previous four periods of CNY -91.95 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -14.6 MM has Grown at 84.12%
over average net sales of the previous four periods of CNY -91.94 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 0.33%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.68%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -89.42% (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 Rongfeng Holding Group Co., Ltd.
Debt-Equity Ratio
Highest at 14.95 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






