Rongsheng Petrochemical Co., Ltd. (002493) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rongsheng Petrochemical Co., Ltd.

Why is Rongsheng Petrochemical Co., Ltd. ?

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 25.69% and Operating profit at -10.74% 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 19.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.69% and Operating profit at -10.74% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 498.15 MM has Grown at -71.31%
INTEREST COVERAGE RATIO(Q) Lowest at 129.85
OPERATING PROFIT(Q) Lowest at CNY 2,203.66 MM

With ROE of 5.43%, it has a very expensive valuation with a 2.05 Price to Book Value

Over the past year, while the stock has generated a return of 9.29%, its profits have fallen by -56%
At the current price, the company has a high dividend yield of 1.1

Real-Time Research Report

Verdict Report

How 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 Trading & Distributors)

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

Is Rongsheng Petrochemical Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Rongsheng Petrochemical Co., Ltd.

-100.0%

0.41

27.85%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.69%

EBIT Growth (5y)

-10.74%

EBIT to Interest (avg)

3.33

Debt to EBITDA (avg)

8.80

Net Debt to Equity (avg)

4.12

Sales to Capital Employed (avg)

1.16

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

132.10%

Pledged Shares

Institutional Holding

ROCE (avg)

7.47%

ROE (avg)

19.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.05

EV to EBIT

49.80

EV to EBITDA

12.88

EV to Capital Employed

1.19

EV to Sales

0.97

PEG Ratio

Dividend Yield

1.14%

ROCE (Latest)

2.40%

ROE (Latest)

5.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.28% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 1,356.73 MM

NET PROFIT(Q)

Highest at CNY 688.27 MM

EPS(Q)

Highest at CNY 0.06

-16What is not working for the Company

NET PROFIT(HY)

At CNY 498.15 MM has Grown at -71.31%

INTEREST COVERAGE RATIO(Q)

Lowest at 129.85

OPERATING PROFIT(Q)

Lowest at CNY 2,203.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.22 %

NET SALES(Q)

Lowest at CNY 68,510.43 MM

Here's what is working for Rongsheng Petrochemical Co., Ltd.

Pre-Tax Profit

At CNY 1,356.73 MM has Grown at 252.21%

over average net sales of the previous four periods of CNY 385.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 688.27 MM has Grown at 351.61%

over average net sales of the previous four periods of CNY 152.41 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 1,356.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 688.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -9.28% (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 Rongsheng Petrochemical Co., Ltd.

Interest Coverage Ratio

Lowest at 129.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 2,203.66 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.22 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 68,510.43 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 68,510.43 MM has Fallen at -9.13%

over average net sales of the previous four periods of CNY 75,394.43 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)