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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Ruihe Construction Decoration Co., Ltd.

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

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.37%

Poor long term growth as Net Sales has grown by an annual rate of -29.76% and Operating profit at -170.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 9 consecutive quarters

INTEREST(9M) At CNY 63.65 MM has Grown at 61.58%
ROCE(HY) Lowest at -161.49%
DEBT-EQUITY RATIO (HY) Highest at 4,398.7 %

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 45.48%, its profits have risen by 75.9%

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.

47.64%

2.14

53.39%

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)

-29.76%

EBIT Growth (5y)

-170.65%

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)

1.05

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

130.67

EV to EBIT

-60.63

EV to EBITDA

99.72

EV to Capital Employed

3.24

EV to Sales

4.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.34%

ROE (Latest)

-806.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -42.67% (YoY

PRE-TAX PROFIT(Q)

At CNY -11.92 MM has Grown at 63.66%

NET PROFIT(Q)

At CNY -20.09 MM has Grown at 56.76%

-24What is not working for the Company

INTEREST(9M)

At CNY 63.65 MM has Grown at 61.58%

ROCE(HY)

Lowest at -161.49%

DEBT-EQUITY RATIO (HY)

Highest at 4,398.7 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.26%

CASH AND EQV(HY)

Lowest at CNY 318.69 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.24%

NET SALES(Q)

Lowest at CNY 109.65 MM

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

Pre-Tax Profit

At CNY -11.92 MM has Grown at 63.66%

over average net sales of the previous four periods of CNY -32.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -20.09 MM has Grown at 56.76%

over average net sales of the previous four periods of CNY -46.47 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -42.67% (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 63.65 MM has Grown at 61.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 109.65 MM has Fallen at -43.53%

over average net sales of the previous four periods of CNY 194.16 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 4,398.7 % 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

Debtors Turnover Ratio

Lowest at 0.26% 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 109.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 318.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 11.24%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio