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

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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 -3.48% and Operating profit at -255.63% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -8.79%, the company declared Very Negative results in Mar 25

NET PROFIT(HY) At CNY -661 MM has Grown at -545.52%
ROCE(HY) Lowest at -52.56%
NET SALES(Q) At CNY 444.07 MM has Fallen at -12.61%

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 -2.33%, its profits have fallen by -379.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.33% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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, High Return

Absolute

Risk Adjusted

Volatility

Royal Group Co., Ltd.

-12.16%

0.47

54.10%

China Shanghai Composite

14.77%

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)

-3.48%

EBIT Growth (5y)

-255.63%

EBIT to Interest (avg)

-0.94

Debt to EBITDA (avg)

74.85

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

0.63

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

2.47

EV to EBIT

-9.08

EV to EBITDA

-12.47

EV to Capital Employed

1.46

EV to Sales

2.29

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.04%

ROE (Latest)

-74.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 348.78 MM

NET SALES(HY)

At CNY 975.13 MM has Grown at 22.3%

RAW MATERIAL COST(Y)

Fallen by -28.2% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 9.14 MM

NET PROFIT(Q)

Highest at CNY 5.67 MM

EPS(Q)

Highest at CNY 0.01

-15What is not working for the Company

NET PROFIT(HY)

At CNY -661 MM has Grown at -545.52%

ROCE(HY)

Lowest at -52.56%

NET SALES(Q)

At CNY 444.07 MM has Fallen at -12.61%

CASH AND EQV(HY)

Lowest at CNY 852.96 MM

DEBT-EQUITY RATIO (HY)

Highest at 220.08 %

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

Operating Cash Flow

Highest at CNY 348.78 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 9.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 9.14 MM has Grown at 104.9%

over average net sales of the previous four periods of CNY -186.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 5.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 5.67 MM has Grown at 103.33%

over average net sales of the previous four periods of CNY -170.33 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -28.2% (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 Royal Group Co., Ltd.

Net Sales

At CNY 444.07 MM has Fallen at -12.61%

over average net sales of the previous four periods of CNY 508.13 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 444.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 852.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 220.08 %

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