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 -11.39% and Operating profit at -27.84% over the last 5 years
- NET SALES(9M) At CNY 1,055.05 MM has Grown at -22.89%
- OPERATING CASH FLOW(Y) Lowest at CNY -108.82 MM
- DEBT-EQUITY RATIO (HY) Highest at 5.6 %
3
With ROE of 2.11%, it has a very expensive valuation with a 5.26 Price to Book Value
- Over the past year, while the stock has generated a return of -21.95%, its profits have risen by 107.1% ; the PEG ratio of the company is 2.3
4
Below par performance in long term as well as near term
- Along with generating -21.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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.
-0.77%
1.03
39.42%
China Shanghai Composite
15.17%
1.02
14.86%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-11.39%
EBIT Growth (5y)
-27.84%
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)
1.44
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
249
Industry P/E
Price to Book Value
5.26
EV to EBIT
938.41
EV to EBITDA
272.58
EV to Capital Employed
5.11
EV to Sales
3.74
PEG Ratio
2.33
Dividend Yield
NA
ROCE (Latest)
0.54%
ROE (Latest)
2.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.99% (YoY
CASH AND EQV(HY)
Highest at CNY 817.6 MM
-40What is not working for the Company
NET SALES(9M)
At CNY 1,055.05 MM has Grown at -22.89%
OPERATING CASH FLOW(Y)
Lowest at CNY -108.82 MM
DEBT-EQUITY RATIO
(HY)
Highest at 5.6 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.01 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.24 times
INTEREST(Q)
Highest at CNY 4.61 MM
OPERATING PROFIT(Q)
Lowest at CNY -1.45 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -0.38 %
PRE-TAX PROFIT(Q)
Lowest at CNY -4.67 MM
NET PROFIT(Q)
Lowest at CNY -1.87 MM
EPS(Q)
Lowest at CNY -0
Here's what is working for Ronglian Group Ltd.
Cash and Eqv
Highest at CNY 817.6 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.99% (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 1,055.05 MM has Grown at -22.89%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -4.67 MM has Fallen at -210.92%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -1.87 MM has Fallen at -68.18%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY -108.82 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 4.61 MM has Grown at 143.4%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest
Highest at CNY 4.61 MM
in the last five periods and Increased by 143.4% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY -1.45 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -0.38 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -4.67 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -1.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Highest at 5.6 %
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
Inventory Turnover Ratio
Lowest at 2.01 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 2.24 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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