Shanghai Rongtai Health Technology Corp., Ltd. (603579) 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

Shanghai Rongtai Health Technology Corp., Ltd.

Why is Shanghai Rongtai Health Technology Corp., Ltd. ?

Poor Management Efficiency with a low ROCE of 10.73%

The company has been able to generate a Return on Capital Employed (avg) of 10.73% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -6.06% and Operating profit at -26.05% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.06% and Operating profit at -26.05% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 87.86 MM
INTEREST(Q) At CNY 1.93 MM has Grown at 259.45%
RAW MATERIAL COST(Y) Grown by 13.91% (YoY)

With ROE of 5.27%, it has a fair valuation with a 1.18 Price to Book Value

Over the past year, while the stock has generated a return of -52.24%, its profits have fallen by -14.7%
At the current price, the company has a high dividend yield of 2.1

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 Electronics & Appliances)

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

Is Shanghai Rongtai Health Technology Corp., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Rongtai Health Technology Corp., Ltd.

-50.37%

0.19

42.96%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.06%

EBIT Growth (5y)

-26.05%

EBIT to Interest (avg)

6.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.57

Tax Ratio

13.16%

Dividend Payout Ratio

66.70%

Pledged Shares

Institutional Holding

ROCE (avg)

8.31%

ROE (avg)

10.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.18

EV to EBIT

45.64

EV to EBITDA

23.88

EV to Capital Employed

1.28

EV to Sales

1.45

PEG Ratio

Dividend Yield

2.06%

ROCE (Latest)

2.80%

ROE (Latest)

5.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

6What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,064.84 MM

NET SALES(Q)

Highest at CNY 548.61 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 87.86 MM

INTEREST(Q)

At CNY 1.93 MM has Grown at 259.45%

RAW MATERIAL COST(Y)

Grown by 13.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.23 times

PRE-TAX PROFIT(Q)

At CNY 24.27 MM has Fallen at -33.42%

Here's what is working for Shanghai Rongtai Health Technology Corp., Ltd.

Net Sales

At CNY 548.61 MM has Grown at 35.45%

over average net sales of the previous four periods of CNY 405.03 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 548.61 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 3,064.84 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 Shanghai Rongtai Health Technology Corp., Ltd.

Interest

At CNY 1.93 MM has Grown at 259.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 87.86 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 24.27 MM has Fallen at -33.42%

over average net sales of the previous four periods of CNY 36.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 13.91% (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