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

Flat 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 -19.10%, 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 21.43% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.10% 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.

-23.48%

2.46

63.67%

China Shanghai Composite

21.43%

1.55

13.83%

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)

-14.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

3.34

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

180

Industry P/E

Price to Book Value

26.70

EV to EBIT

203.85

EV to EBITDA

127.55

EV to Capital Employed

17.54

EV to Sales

5.87

PEG Ratio

Dividend Yield

ROCE (Latest)

8.60%

ROE (Latest)

14.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -6.64 MM

NET SALES(HY)

Higher at CNY 260.83 MM

NET PROFIT(HY)

Higher at CNY 26.61 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 61.47 times

-19What is not working for the Company

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%

INTEREST(9M)

At CNY 0.71 MM has Grown at 7.5%

RAW MATERIAL COST(Y)

Grown by 6.39% (YoY

CASH AND EQV(HY)

Lowest at CNY 29.22 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.19 times

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

Operating Cash Flow

Highest at CNY -6.64 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 61.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Sales

At CNY 35.61 MM has Fallen at -51.46%

over average net sales of the previous four periods of CNY 73.37 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -3.67 MM has Fallen at -216.96%

over average net sales of the previous four periods of CNY 3.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.94 MM has Fallen at -267.69%

over average net sales of the previous four periods of CNY 2.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.71 MM has Grown at 7.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 29.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.39% (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