Royal Group Co., Ltd. (002329) 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

Royal Group Co., Ltd.

Why is Royal Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.94%

Poor long term growth as Net Sales has grown by an annual rate of -8.42% and Operating profit at -217.48% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 174.08 MM
NET SALES(9M) At CNY 1,307.39 MM has Grown at -9.6%
ROCE(HY) Lowest at -62.96%

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 -14.75%, its profits have risen by 32.1%

Below par performance in long term as well as near term

Along with generating -14.75% 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 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 Other Agricultural Products)

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

Is Royal Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Royal Group Co., Ltd.

-20.29%

-0.08

47.68%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.42%

EBIT Growth (5y)

-217.48%

EBIT to Interest (avg)

-0.94

Debt to EBITDA (avg)

74.85

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

0.62

Tax Ratio

8.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.94%

ROE (avg)

2.15%

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

6.05

EV to EBIT

-12.57

EV to EBITDA

-16.14

EV to Capital Employed

1.95

EV to Sales

2.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.48%

ROE (Latest)

-94.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 7.06 MM has Grown at 106%

NET PROFIT(Q)

At CNY 4.22 MM has Grown at 103.76%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 174.08 MM

NET SALES(9M)

At CNY 1,307.39 MM has Grown at -9.6%

ROCE(HY)

Lowest at -62.96%

DEBT-EQUITY RATIO (HY)

Highest at 444.77 %

RAW MATERIAL COST(Y)

Grown by 10.36% (YoY

CASH AND EQV(HY)

Lowest at CNY 564.36 MM

Here's what is working for Royal Group Co., Ltd.

Pre-Tax Profit

At CNY 7.06 MM has Grown at 106%

over average net sales of the previous four periods of CNY -117.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.22 MM has Grown at 103.76%

over average net sales of the previous four periods of CNY -112.22 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Royal Group Co., Ltd.

Debt-Equity Ratio

Highest at 444.77 % and Grown

In each half year 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

Net Sales

At CNY 1,307.39 MM has Grown at -9.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 174.08 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 564.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 10.36% (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

Non Operating Income

Highest at CNY 1.54 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income