Why is Zhejiang Red Dragonfly Footwear Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.47%
- The company has been able to generate a Return on Capital Employed (avg) of 0.47% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -3.82% and Operating profit at -239.49% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At CNY -55.99 MM has Grown at -64.12%
- NET SALES(HY) At CNY 942.46 MM has Grown at -11.8%
- ROCE(HY) Lowest at -4.01%
4
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 -1.68%, its profits have fallen by -536.1%
- At the current price, the company has a high dividend yield of 4.3
5
Below par performance in long term as well as near term
- Along with generating -1.68% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Footwear)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhejiang Red Dragonfly Footwear Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zhejiang Red Dragonfly Footwear Co., Ltd.
13.27%
0.65
40.92%
China Shanghai Composite
21.43%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.50%
EBIT Growth (5y)
-229.41%
EBIT to Interest (avg)
-3.59
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
0.71
Tax Ratio
65.49%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.47%
ROE (avg)
0.88%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.57
EV to EBIT
-16.56
EV to EBITDA
-42.50
EV to Capital Employed
2.09
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
3.62%
ROCE (Latest)
-12.61%
ROE (Latest)
-5.86%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.06% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -46.62 %
DEBTORS TURNOVER RATIO(HY)
Highest at 5.23 times
PRE-TAX PROFIT(Q)
Highest at CNY 13.63 MM
NET PROFIT(Q)
Highest at CNY 8.61 MM
EPS(Q)
Highest at CNY 0.02
-10What is not working for the Company
NET PROFIT(HY)
At CNY -100.6 MM has Grown at -88.69%
ROCE(HY)
Lowest at -5.06%
Here's what is working for Zhejiang Red Dragonfly Footwear Co., Ltd.
Pre-Tax Profit
At CNY 13.63 MM has Grown at 110.09%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 8.61 MM has Grown at 109.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 13.63 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 8.61 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.02
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Lowest at -46.62 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 5.23 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -8.06% (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






