Shenzhen Ruihe Construction Decoration Co., Ltd. (002620) 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

Shenzhen Ruihe Construction Decoration Co., Ltd.

Why is Shenzhen Ruihe Construction Decoration Co., Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -39.06% and Operating profit at -48.03% over the last 5 years
The company has a negative book value of Rs 73.70 crore

Negative results in Mar 26

INTEREST(HY) At CNY 36.71 MM has Grown at 46.57%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.16 times
CASH AND EQV(HY) Lowest at CNY 279.24 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 40.37%, its profits have risen by 55.9%

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 Miscellaneous)

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

Is Shenzhen Ruihe Construction Decoration Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Ruihe Construction Decoration Co., Ltd.

-100.0%

2.00

51.19%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-39.06%

EBIT Growth (5y)

-48.03%

EBIT to Interest (avg)

-6.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

41.68

Sales to Capital Employed (avg)

0.87

Tax Ratio

24.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.37%

ROE (avg)

2.43%

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

-25.83

EV to EBIT

251.29

EV to EBITDA

56.38

EV to Capital Employed

4.08

EV to Sales

7.71

PEG Ratio

Dividend Yield

ROCE (Latest)

1.62%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 64.61 MM

NET PROFIT(HY)

Higher at CNY -54.96 MM

ROCE(HY)

Highest at 0%

RAW MATERIAL COST(Y)

Fallen by 0.46% (YoY

-22What is not working for the Company

INTEREST(HY)

At CNY 36.71 MM has Grown at 46.57%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.16 times

CASH AND EQV(HY)

Lowest at CNY 279.24 MM

NET SALES(Q)

Lowest at CNY 55.32 MM

OPERATING PROFIT(Q)

Lowest at CNY -0.24 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.43 %

PRE-TAX PROFIT(Q)

At CNY -18.12 MM has Fallen at -35.72%

Here's what is working for Shenzhen Ruihe Construction Decoration Co., Ltd.

Operating Cash Flow

Highest at CNY 64.61 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)

Net Profit

Higher at CNY -54.96 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

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

Net Profit (CNY MM)

Raw Material Cost

Fallen by 0.46% (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 Shenzhen Ruihe Construction Decoration Co., Ltd.

Interest

At CNY 36.71 MM has Grown at 46.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 55.32 MM has Fallen at -43.89%

over average net sales of the previous four periods of CNY 98.59 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.16 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 55.32 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -0.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY -18.12 MM has Fallen at -35.72%

over average net sales of the previous four periods of CNY -13.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 279.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents