ScoreWhy 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 -11.21% and Operating profit at -29.55% over the last 5 years
- NET SALES(HY) At CNY 814.88 MM has Grown at -24.27%
- PRE-TAX PROFIT(Q) At CNY 0.69 MM has Fallen at -85.65%
- NET PROFIT(Q) At CNY 0.88 MM has Fallen at -83.04%
3
With ROE of 2.11%, it has a very expensive valuation with a 4.24 Price to Book Value
- Over the past year, while the stock has generated a return of 6.65%, its profits have risen by 107.1% ; the PEG ratio of the company is 1.9
Real-Time Research ReportHow 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 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, High Return
Absolute
Risk Adjusted
Volatility
Ronglian Group Ltd.
2.63%
1.48
47.46%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-11.21%
EBIT Growth (5y)
-29.55%
EBIT to Interest (avg)
-13.26
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.52
Tax Ratio
3.64%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.36%
ROE (avg)
1.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
200
Industry P/E
Price to Book Value
4.24
EV to EBIT
756.26
EV to EBITDA
219.67
EV to Capital Employed
4.12
EV to Sales
3.02
PEG Ratio
1.87
Dividend Yield
NA
ROCE (Latest)
0.54%
ROE (Latest)
2.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET PROFIT(HY)
Higher at CNY 18.62 MM
ROCE(HY)
Highest at 2.07%
RAW MATERIAL COST(Y)
Fallen by -38.68% (YoY
-19What is not working for the Company
NET SALES(HY)
At CNY 814.88 MM has Grown at -24.27%
PRE-TAX PROFIT(Q)
At CNY 0.69 MM has Fallen at -85.65%
NET PROFIT(Q)
At CNY 0.88 MM has Fallen at -83.04%
OPERATING PROFIT(Q)
Lowest at CNY 0.97 MM
Here's what is working for Ronglian Group Ltd.
Raw Material Cost
Fallen by -38.68% (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 Ronglian Group Ltd.
Net Sales
At CNY 169.59 MM has Fallen at -57.42%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 0.69 MM has Fallen at -85.65%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 0.88 MM has Fallen at -83.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Lowest at CNY 169.59 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 0.97 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
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