Runjian Co., Ltd. (002929) 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

Runjian Co., Ltd.

Why is Runjian Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 19.64% and Operating profit at -28.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.64% and Operating profit at -28.90% over the last 5 years

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

PRE-TAX PROFIT(Q) At CNY -39.55 MM has Fallen at -500.96%
NET PROFIT(Q) At CNY -33.76 MM has Fallen at -373.77%
ROCE(HY) Lowest at -0.59%

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 -14.33%, its profits have fallen by -100.7%
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -14.33% returns

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 Computers - Software & Consulting)

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

Is Runjian Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Runjian Co., Ltd.

-3.81%

1.21

49.67%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.64%

EBIT Growth (5y)

-28.90%

EBIT to Interest (avg)

5.80

Debt to EBITDA (avg)

8.42

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.76

Tax Ratio

15.01%

Dividend Payout Ratio

14.72%

Pledged Shares

Institutional Holding

ROCE (avg)

5.18%

ROE (avg)

7.18%

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

2.26

EV to EBIT

201.91

EV to EBITDA

89.24

EV to Capital Employed

1.61

EV to Sales

2.17

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

0.80%

ROE (Latest)

-0.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 987.75 MM

CASH AND EQV(HY)

Highest at CNY 4,530.72 MM

-31What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -39.55 MM has Fallen at -500.96%

NET PROFIT(Q)

At CNY -33.76 MM has Fallen at -373.77%

ROCE(HY)

Lowest at -0.59%

DEBT-EQUITY RATIO (HY)

Highest at 141.55 %

RAW MATERIAL COST(Y)

Grown by 6.89% (YoY

INTEREST(Q)

Highest at CNY 40.01 MM

Here's what is working for Runjian Co., Ltd.

Operating Cash Flow

Highest at CNY 987.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 4,530.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Pre-Tax Profit

At CNY -39.55 MM has Fallen at -500.96%

over average net sales of the previous four periods of CNY 9.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -33.76 MM has Fallen at -373.77%

over average net sales of the previous four periods of CNY 12.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 40.01 MM has Grown at 13.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 141.55 % 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

Interest

Highest at CNY 40.01 MM

in the last five periods and Increased by 13.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 6.89% (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