Rongfeng Holding Group Co., Ltd. (000668) 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

Rongfeng Holding Group Co., Ltd.

Why is Rongfeng Holding Group 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

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 23.83% and Operating profit at 38.98% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 23.83% and Operating profit at 38.98% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 193.69 MM
NET SALES(HY) Higher at CNY 275.07 MM
NET PROFIT(HY) Higher at CNY 40.87 MM

With ROE of 3.69%, it has a fair valuation with a 4.33 Price to Book Value

Over the past year, while the stock has generated a return of 166.10%, its profits have risen by 107.3% ; the PEG ratio of the company is 1.1

Real-Time Research Report

Verdict Report

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.

87.51%

5.03

49.35%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.83%

EBIT Growth (5y)

38.98%

EBIT to Interest (avg)

-4.56

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.21

Tax Ratio

43.10%

Dividend Payout Ratio

89.84%

Pledged Shares

Institutional Holding

ROCE (avg)

1.85%

ROE (avg)

5.90%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

121

Industry P/E

Price to Book Value

4.46

EV to EBIT

52.96

EV to EBITDA

33.84

EV to Capital Employed

4.89

EV to Sales

9.31

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

9.23%

ROE (Latest)

3.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 191.23 MM

ROCE(HY)

Highest at 3.74%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.71 times

RAW MATERIAL COST(Y)

Fallen by 1.65% (YoY

NET SALES(9M)

Higher at CNY 344.75 MM

NET PROFIT(9M)

Higher at CNY 29.42 MM

-11What is not working for the Company

NET SALES(Q)

At CNY 69.68 MM has Fallen at -20.22%

PRE-TAX PROFIT(Q)

At CNY -11.46 MM has Fallen at -194.65%

NET PROFIT(Q)

At CNY -11.45 MM has Fallen at -263.14%

Here's what is working for Rongfeng Holding Group Co., Ltd.

Operating Cash Flow

Highest at CNY 191.23 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 0.71 times 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

Raw Material Cost

Fallen by 1.65% (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.

Net Sales

At CNY 69.68 MM has Fallen at -20.22%

over average net sales of the previous four periods of CNY 87.34 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -11.46 MM has Fallen at -194.65%

over average net sales of the previous four periods of CNY 12.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.45 MM has Fallen at -263.14%

over average net sales of the previous four periods of CNY 7.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)