Zhejiang Rongsheng Environmental Protection Paper Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Paper, Forest & Jute Products
  • ISIN: CNE100002G68
CNY
15.26
-0.06 (-0.39%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
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
2
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%
3
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
4
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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. should be less than 10%
  2. 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.
15.26%
0.76
32.19%
China Shanghai Composite
15.17%
1.58
14.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
0
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
0
Institutional Holding
0
ROCE (avg)
8.22%
ROE (avg)
11.36%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
20
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
NA
Dividend Yield
3.82%
ROCE (Latest)
4.09%
ROE (Latest)
8.01%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
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