Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. (603165) 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 Rongsheng Environmental Protection Paper Co., Ltd.

Why is Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.30% and Operating profit at -18.67% over the last 5 years

With a fall in PBT of -0.95%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 6 consecutive quarters
NET PROFIT(HY) At CNY 56.23 MM has Grown at -59.24%
OPERATING CASH FLOW(Y) Lowest at CNY -331.4 MM
ROCE(HY) Lowest at 9.47%

With ROE of 8.01%, it has a very attractive valuation with a 1.63 Price to Book Value

Over the past year, while the stock has generated a return of -3.92%, its profits have fallen by -32.7%
At the current price, the company has a high dividend yield of 3.8

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.92% 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 Paper, Forest & Jute Products)

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

Is Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Rongsheng Environmental Protection Paper Co., Ltd.

54.57%

0.76

32.19%

China Shanghai Composite

24.7%

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)

6.30%

EBIT Growth (5y)

-18.67%

EBIT to Interest (avg)

4.42

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.59

Tax Ratio

2.74%

Dividend Payout Ratio

46.73%

Pledged Shares

Institutional Holding

ROCE (avg)

8.22%

ROE (avg)

11.36%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.63

EV to EBIT

45.45

EV to EBITDA

18.36

EV to Capital Employed

1.86

EV to Sales

1.43

PEG Ratio

Dividend Yield

3.82%

ROCE (Latest)

4.09%

ROE (Latest)

8.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 175.2%

CASH AND EQV(HY)

Highest at CNY 5,914.91 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 2.75

-21What is not working for the Company

NET PROFIT(HY)

At CNY 56.23 MM has Grown at -59.24%

OPERATING CASH FLOW(Y)

Lowest at CNY -331.4 MM

ROCE(HY)

Lowest at 9.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.75 times

INTEREST COVERAGE RATIO(Q)

Lowest at 59.83

RAW MATERIAL COST(Y)

Grown by 31.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.55 times

OPERATING PROFIT(Q)

Lowest at CNY 10.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.95 %

Here's what is working for Zhejiang Rongsheng Environmental Protection Paper Co., Ltd.

Cash and Eqv

Highest at CNY 5,914.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 2.75

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 175.2%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Zhejiang Rongsheng Environmental Protection Paper Co., Ltd.

Net Profit

At CNY 56.23 MM has Grown at -59.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -331.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 59.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.75 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 10.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 22.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 31.97% (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