Why is Zhejiang Renzhi Co., Ltd. ?
1
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 26.83% and Operating profit at 24.40% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With a fall in Operating Profit of -212.8%, the company declared Very Negative results in Mar 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 153.79%
- NET SALES(Q) At CNY 36.42 MM has Fallen at -54.23%
- PRE-TAX PROFIT(Q) At CNY -2.21 MM has Fallen at -146.95%
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.
100.8%
5.30
68.37%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
26.83%
EBIT Growth (5y)
24.40%
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)
3.12
Tax Ratio
17.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.21%
ROE (avg)
11.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
111
Industry P/E
Price to Book Value
53.96
EV to EBIT
146.59
EV to EBITDA
104.28
EV to Capital Employed
38.03
EV to Sales
8.80
PEG Ratio
0.62
Dividend Yield
NA
ROCE (Latest)
25.94%
ROE (Latest)
48.47%
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
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
26What is working for the Company
NET SALES(HY)
Higher at CNY 223.56 MM
NET PROFIT(HY)
Higher at CNY 21.85 MM
RAW MATERIAL COST(Y)
Fallen by -92.13% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 51.68%
-19What is not working for the Company
INTEREST(HY)
At CNY 0.47 MM has Grown at 153.79%
NET SALES(Q)
At CNY 36.42 MM has Fallen at -54.23%
PRE-TAX PROFIT(Q)
At CNY -2.21 MM has Fallen at -146.95%
NET PROFIT(Q)
At CNY -2.88 MM has Fallen at -179.8%
CASH AND EQV(HY)
Lowest at CNY 35.81 MM
Here's what is working for Zhejiang Renzhi Co., Ltd.
Inventory Turnover Ratio
Highest at 51.68%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -92.13% (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 0.47 MM has Grown at 153.79%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 36.42 MM has Fallen at -54.23%
over average net sales of the previous four periods of CNY 79.57 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -2.21 MM has Fallen at -146.95%
over average net sales of the previous four periods of CNY 4.71 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -2.88 MM has Fallen at -179.8%
over average net sales of the previous four periods of CNY 3.61 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Lowest at CNY 36.42 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Cash and Eqv
Lowest at CNY 35.81 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






