Zhejiang Renzhi Co., Ltd. (002629) 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 Renzhi Co., Ltd.

Why is Zhejiang Renzhi Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 18.74% and Operating profit at 18.80% over the last 5 years
The company is Net-Debt Free

Negative results in Mar 26

NET SALES(Q) At CNY 35.61 MM has Fallen at -51.46%
PRE-TAX PROFIT(Q) At CNY -3.67 MM has Fallen at -216.96%
NET PROFIT(Q) At CNY -3.94 MM has Fallen at -267.69%

With ROE of 14.84%, it has a expensive valuation with a 26.70 Price to Book Value

Over the past year, while the stock has generated a return of -25.64%, its profits have fallen by -53.9%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.64% returns

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 Oil)

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

Is Zhejiang Renzhi Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Renzhi Co., Ltd.

-42.93%

2.42

64.11%

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)

18.74%

EBIT Growth (5y)

18.80%

EBIT to Interest (avg)

-12.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

3.34

Tax Ratio

15.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.93%

ROE (avg)

11.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

197

Industry P/E

Price to Book Value

29.19

EV to EBIT

222.49

EV to EBITDA

139.21

EV to Capital Employed

19.14

EV to Sales

6.41

PEG Ratio

Dividend Yield

ROCE (Latest)

8.60%

ROE (Latest)

14.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 0.6 MM

NET SALES(HY)

At CNY 68.98 MM has Grown at 37.54%

RAW MATERIAL COST(Y)

Fallen by -173.91% (YoY

NET PROFIT(9M)

Higher at CNY 18.45 MM

-18What is not working for the Company

INTEREST(HY)

At CNY 0.63 MM has Grown at 37.87%

NET SALES(Q)

At CNY 33.36 MM has Fallen at -54.4%

PRE-TAX PROFIT(Q)

At CNY -6.45 MM has Fallen at -332.72%

NET PROFIT(Q)

At CNY -8.16 MM has Fallen at -491.62%

DEBT-EQUITY RATIO (HY)

Highest at 85.7 %

Here's what is working for Zhejiang Renzhi Co., Ltd.

Operating Cash Flow

Highest at CNY 0.6 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)

Raw Material Cost

Fallen by -173.91% (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 Renzhi Co., Ltd.

Interest

At CNY 0.63 MM has Grown at 37.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 33.36 MM has Fallen at -54.4%

over average net sales of the previous four periods of CNY 73.17 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -6.45 MM has Fallen at -332.72%

over average net sales of the previous four periods of CNY 2.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.16 MM has Fallen at -491.62%

over average net sales of the previous four periods of CNY 2.08 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 85.7 %

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