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 39.70%, 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.

-0.87%

2.16

52.82%

China Shanghai Composite

3.23%

1.20

14.07%

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)

-7.50

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

41.68

Sales to Capital Employed (avg)

0.87

Tax Ratio

21.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

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

-24.91

EV to EBIT

244.75

EV to EBITDA

54.91

EV to Capital Employed

3.97

EV to Sales

7.51

PEG Ratio

Dividend Yield

ROCE (Latest)

1.62%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 84.41 MM

NET PROFIT(HY)

Higher at CNY -41.89 MM

NET SALES(Q)

At CNY 116.48 MM has Grown at 37.03%

INVENTORY TURNOVER RATIO(HY)

Highest at 20.99 times

-24What is not working for the Company

NET SALES(HY)

At CNY 171.79 MM has Grown at -25.03%

NET PROFIT(HY)

At CNY -41.89 MM has Grown at -80.57%

INTEREST(HY)

At CNY 36.71 MM has Grown at 37.82%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.16 times

RAW MATERIAL COST(Y)

Grown by 34.17% (YoY

CASH AND EQV(HY)

Lowest at CNY 248.33 MM

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

Net Sales

At CNY 116.48 MM has Grown at 37.03%

over average net sales of the previous four periods of CNY 85 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

Higher at CNY -41.89 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

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

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 84.41 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 20.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shenzhen Ruihe Construction Decoration Co., Ltd.

Net Profit

At CNY -41.89 MM has Grown at -80.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 36.71 MM has Grown at 37.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (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

Cash and Eqv

Lowest at CNY 248.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 34.17% (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