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. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 24.94% and Operating profit at 18.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.85% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -255.54%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
INTEREST(HY) At CNY 0.47 MM has Grown at 49.63%
NET SALES(Q) At CNY 18.12 MM has Fallen at -74%
RAW MATERIAL COST(Y) Grown by 362.7% (YoY)

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.

16.95%

3.71

63.46%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.94%

EBIT Growth (5y)

18.90%

EBIT to Interest (avg)

-14.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

3.31

Tax Ratio

17.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.21%

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

140

Industry P/E

Price to Book Value

67.65

EV to EBIT

183.50

EV to EBITDA

130.54

EV to Capital Employed

47.60

EV to Sales

11.02

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

25.94%

ROE (Latest)

48.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -4.2 MM

-42What is not working for the Company

INTEREST(HY)

At CNY 0.47 MM has Grown at 49.63%

NET SALES(Q)

At CNY 18.12 MM has Fallen at -74%

RAW MATERIAL COST(Y)

Grown by 362.7% (YoY

CASH AND EQV(HY)

Lowest at CNY 9.84 MM

DEBT-EQUITY RATIO (HY)

Highest at 79.13 %

OPERATING PROFIT(Q)

Lowest at CNY -9.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -50.32 %

PRE-TAX PROFIT(Q)

Lowest at CNY -9.67 MM

NET PROFIT(Q)

Lowest at CNY -9.3 MM

EPS(Q)

Lowest at CNY -0.02

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

Operating Cash Flow

Highest at CNY -4.2 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)

Here's what is not working for Zhejiang Renzhi Co., Ltd.

Interest

At CNY 0.47 MM has Grown at 49.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 18.12 MM has Fallen at -74%

over average net sales of the previous four periods of CNY 69.7 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -9.67 MM has Fallen at -246.83%

over average net sales of the previous four periods of CNY 6.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.3 MM has Fallen at -284.51%

over average net sales of the previous four periods of CNY 5.04 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -9.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -50.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -9.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -9.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 9.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 79.13 %

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

Raw Material Cost

Grown by 362.7% (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