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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rongsheng Petrochemical Co., Ltd.

Why is Rongsheng Petrochemical Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 25.30% and Operating profit at -13.21% over the last 5 years
The company is Net-Debt Free
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 25.30% and Operating profit at -13.21% over the last 5 years

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

DEBTORS TURNOVER RATIO(HY) Lowest at 31.64 times
INTEREST COVERAGE RATIO(Q) Lowest at 179.49
DEBT-EQUITY RATIO (HY) Highest at 441.03 %

With ROE of 5.43%, it has a very expensive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of 49.83%, its profits have fallen by -56%
At the current price, the company has a high dividend yield of 1

Market Beating Performance

The stock has generated a return of 49.83% in the last 1 year, much higher than market (China Shanghai Composite) returns of 24.70%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rongsheng Petrochemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rongsheng Petrochemical Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Rongsheng Petrochemical Co., Ltd.

49.83%

0.82

38.59%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.30%

EBIT Growth (5y)

-13.21%

EBIT to Interest (avg)

3.33

Debt to EBITDA (avg)

8.80

Net Debt to Equity (avg)

4.12

Sales to Capital Employed (avg)

1.23

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

2.27

EV to EBIT

51.53

EV to EBITDA

13.33

EV to Capital Employed

1.23

EV to Sales

1.01

PEG Ratio

Dividend Yield

1.02%

ROCE (Latest)

2.40%

ROE (Latest)

5.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

12What is working for the Company

NET PROFIT(Q)

At CNY 469.62 MM has Grown at 164.38%

RAW MATERIAL COST(Y)

Fallen by -7.7% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 1,385.06 MM

-7What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 31.64 times

INTEREST COVERAGE RATIO(Q)

Lowest at 179.49

DEBT-EQUITY RATIO (HY)

Highest at 441.03 %

OPERATING PROFIT(Q)

Lowest at CNY 2,866.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.62 %

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

Pre-Tax Profit

At CNY 1,385.06 MM has Grown at 196.61%

over average net sales of the previous four periods of CNY 466.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 469.62 MM has Grown at 164.38%

over average net sales of the previous four periods of CNY 177.63 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 1,385.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -7.7% (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 179.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 31.64 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 2,866.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 441.03 %

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