Zhejiang Red Dragonfly Footwear Co., Ltd. (603116) 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

Zhejiang Red Dragonfly Footwear Co., Ltd.

Why is Zhejiang Red Dragonfly Footwear Co., Ltd. ?

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)

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

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%

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

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

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 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.

2.19%

0.65

40.92%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.82%

EBIT Growth (5y)

-239.49%

EBIT to Interest (avg)

-3.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.69

Tax Ratio

65.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.47%

ROE (avg)

0.88%

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

1.27

EV to EBIT

-17.77

EV to EBITDA

45.81

EV to Capital Employed

1.46

EV to Sales

1.12

PEG Ratio

Dividend Yield

4.31%

ROCE (Latest)

-8.23%

ROE (Latest)

-4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

NET PROFIT(HY)

Higher at CNY -55.99 MM

RAW MATERIAL COST(Y)

Fallen by -15.61% (YoY

-20What is not working for the Company

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%

INTEREST(Q)

At CNY 1.35 MM has Grown at 16.09%

CASH AND EQV(HY)

Lowest at CNY 2,748.65 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.43 times

OPERATING PROFIT(Q)

Lowest at CNY -33.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.99 %

Here's what is working for Zhejiang Red Dragonfly Footwear Co., Ltd.

Net Profit

Higher at CNY -55.99 MM

than preceding 12 month period ended Sep 2025

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 -15.61% (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 Zhejiang Red Dragonfly Footwear Co., Ltd.

Net Profit

At CNY -55.99 MM has Grown at -64.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.35 MM has Grown at 16.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 942.46 MM has Grown at -11.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -33.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.99 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,748.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio