Routon Electronic Co., Ltd. (600355) 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

Routon Electronic Co., Ltd.

Why is Routon Electronic Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -7.02% and Operating profit at 8.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET PROFIT(HY) Higher at CNY -20.44 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.96%
NET SALES(Q) Highest at CNY 62.33 MM

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 -43.06%, its profits have risen by 2.6%

Below par performance in long term as well as near term

Along with generating -43.06% 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 Report

Verdict Report

How 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%

0.01

59.82%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.02%

EBIT Growth (5y)

8.15%

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)

0.65

Tax Ratio

12.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

14.23

EV to EBIT

-42.06

EV to EBITDA

-52.78

EV to Capital Employed

9.20

EV to Sales

10.77

PEG Ratio

Dividend Yield

ROCE (Latest)

-21.88%

ROE (Latest)

-37.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

NET PROFIT(HY)

Higher at CNY -20.44 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.96%

NET SALES(Q)

Highest at CNY 62.33 MM

OPERATING PROFIT(Q)

Highest at CNY -6.32 MM

OPERATING PROFIT MARGIN(Q)

Highest at -10.13 %

PRE-TAX PROFIT(Q)

Highest at CNY -8.61 MM

-14What is not working for the Company

INTEREST(HY)

At CNY 0.83 MM has Grown at 17.67%

ROCE(HY)

Lowest at -31.82%

RAW MATERIAL COST(Y)

Grown by 49.93% (YoY

CASH AND EQV(HY)

Lowest at CNY 61.73 MM

DEBT-EQUITY RATIO (HY)

Highest at 61.28 %

Here's what is working for Routon Electronic Co., Ltd.

Net Sales

At CNY 62.33 MM has Grown at 93.37%

over average net sales of the previous four periods of CNY 32.23 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Profit

Higher at CNY -20.44 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.96% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 62.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY -6.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at -10.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY -8.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for Routon Electronic Co., Ltd.

Interest

At CNY 0.83 MM has Grown at 17.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 61.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 61.28 %

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

Raw Material Cost

Grown by 49.93% (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