ScoreWhy is Routon Electronic Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of 5.93% and Operating profit at 9.25% over the last 5 years
- OPERATING CASH FLOW(Y) Highest at CNY -8.7 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 5.34 times
- DEBTORS TURNOVER RATIO(HY) Highest at 7.07 times
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -71.50%, its profits have risen by 2.6%
4
Below par performance in long term as well as near term
- Along with generating -71.50% 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 hold?
- Overall Portfolio exposure to Routon Electronic Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Routon Electronic Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Routon Electronic Co., Ltd.
-100.0%
-1.15
51.12%
China Shanghai Composite
15.17%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.93%
EBIT Growth (5y)
9.25%
EBIT to Interest (avg)
-22.50
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
0.77
Tax Ratio
12.58%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
14.71
EV to EBIT
-43.43
EV to EBITDA
-54.50
EV to Capital Employed
9.50
EV to Sales
11.12
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-21.88%
ROE (Latest)
-37.83%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend29What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY -8.7 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 5.34 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.07 times
NET SALES(Q)
Highest at CNY 146.23 MM
OPERATING PROFIT(Q)
Highest at CNY -5.77 MM
OPERATING PROFIT MARGIN(Q)
Highest at -3.95 %
PRE-TAX PROFIT(Q)
Highest at CNY -5.84 MM
NET PROFIT(Q)
Highest at CNY -6.68 MM
EPS(Q)
Highest at CNY -0.01
-12What is not working for the Company
INTEREST(HY)
At CNY 0.85 MM has Grown at 6.77%
ROCE(HY)
Lowest at -31.8%
RAW MATERIAL COST(Y)
Grown by 69.36% (YoY
CASH AND EQV(HY)
Lowest at CNY 41.98 MM
DEBT-EQUITY RATIO
(HY)
Highest at 32.18 %
Here's what is working for Routon Electronic Co., Ltd.
Net Sales
At CNY 146.23 MM has Grown at 269.74%
over average net sales of the previous four periods of CNY 39.55 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 5.34 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Cash Flow
Highest at CNY -8.7 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 146.23 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY -5.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at -3.95 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY -5.84 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY -6.68 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY -0.01
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Highest at 7.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Routon Electronic Co., Ltd.
Interest
At CNY 0.85 MM has Grown at 6.77%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Cash and Eqv
Lowest at CNY 41.98 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 32.18 %
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
Raw Material Cost
Grown by 69.36% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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