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 hold?

Overall Portfolio exposure to Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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.

19.96%

0.76

32.19%

China Shanghai Composite

21.43%

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)

4.58%

EBIT Growth (5y)

-28.94%

EBIT to Interest (avg)

4.42

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.53

Tax Ratio

2.74%

Dividend Payout Ratio

241.86%

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

1.74

EV to EBIT

126.77

EV to EBITDA

33.90

EV to Capital Employed

2.32

EV to Sales

1.54

PEG Ratio

Dividend Yield

12.38%

ROCE (Latest)

1.83%

ROE (Latest)

4.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -13.5% (YoY

CASH AND EQV(HY)

Highest at CNY 5,700.4 MM

DEBT-EQUITY RATIO (HY)

Lowest at -43.8 %

EPS(Q)

Highest at CNY 0.29

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -519.66 MM

NET PROFIT(HY)

At CNY 70.17 MM has Grown at -22.61%

ROCE(HY)

Lowest at 9.02%

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

EPS

Highest at CNY 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 5,700.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -43.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -13.5% (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 Rongsheng Environmental Protection Paper Co., Ltd.

Operating Cash Flow

Lowest at CNY -519.66 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)

Net Profit

At CNY 70.17 MM has Grown at -22.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)