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Ronglian Group Ltd.

  • Market Cap: Small Cap
  • Industry: Computers - Software & Consulting
  • ISIN: CNE1000019S2
  • SHE: 002642
CNY
7.16
0.13 (1.85%)

Sep 22

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Ronglian Group Ltd.

Why is Ronglian Group Ltd. ?

1
Poor Management Efficiency with a low ROCE of 1.36%
  • The company has been able to generate a Return on Capital Employed (avg) of 1.36% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -7.74% and Operating profit at 15.52% over the last 5 years
3
Negative results in Mar 26
  • INTEREST(HY) At CNY 6.66 MM has Grown at 33.18%
  • OPERATING CASH FLOW(Y) Lowest at CNY -216.63 MM
  • OPERATING PROFIT(Q) Lowest at CNY 1.79 MM
4
With ROE of 1.73%, it has a expensive valuation with a 3.12 Price to Book Value
  • Over the past year, while the stock has generated a return of -18.18%, its profits have fallen by -27.9%
5
Below par performance in long term as well as near term
  • Along with generating -18.18% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Computers - Software & Consulting)

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

Is Ronglian Group Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Ronglian Group Ltd.
-28.61%
0.54
40.23%
China Shanghai Composite
3.23%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-7.74%
EBIT Growth (5y)
15.52%
EBIT to Interest (avg)
-2.55
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.34
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.84%
ROE (avg)
1.41%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
198
Industry P/E
Price to Book Value
3.42
EV to EBIT
150.88
EV to EBITDA
107.47
EV to Capital Employed
3.65
EV to Sales
1.98
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.42%
ROE (Latest)
1.73%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
NET SALES(9M)

At CNY 1,584.81 MM has Grown at 20.3%

CASH AND EQV(HY)

Highest at CNY 981.32 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.51 times

-21What is not working for the Company
INTEREST(Q)

At CNY 4.6 MM has Grown at 52.55%

RAW MATERIAL COST(Y)

Grown by 18.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 9.51 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.54 times

PRE-TAX PROFIT(Q)

Fallen at -37.46%

NET PROFIT(Q)

Fallen at -37.56%

Here's what is working for Ronglian Group Ltd.

Net Sales
At CNY 1,584.81 MM has Grown at 20.3%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv
Highest at CNY 981.32 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 2.51 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Ronglian Group Ltd.

Interest
At CNY 4.6 MM has Grown at 52.55%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit
Fallen at -37.46%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
Fallen at -37.56%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio
Highest at 9.51 %
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

Inventory Turnover Ratio
Lowest at 2.54 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 18.26% (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

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