Zhejiang Runtu Co., Ltd. (002440) 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 Runtu Co., Ltd.

Why is Zhejiang Runtu Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.74% and Operating profit at -12.18% over the last 5 years

With a growth in Net Sales of 3.02%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 1,162.62 MM
ROCE(HY) Highest at 3.05%
RAW MATERIAL COST(Y) Fallen by -32.03% (YoY)

With ROE of 2.74%, it has a very attractive valuation with a 0.84 Price to Book Value

Over the past year, while the stock has generated a return of 58.79%, its profits have risen by 65.6% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 2.2

Market Beating performance in long term as well as near term

Along with generating 58.79% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Runtu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

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

Is Zhejiang Runtu Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Runtu Co., Ltd.

53.96%

1.70

45.44%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.74%

EBIT Growth (5y)

-12.18%

EBIT to Interest (avg)

17.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.53

Tax Ratio

37.41%

Dividend Payout Ratio

78.74%

Pledged Shares

Institutional Holding

ROCE (avg)

4.49%

ROE (avg)

4.82%

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

0.84

EV to EBIT

23.07

EV to EBITDA

9.21

EV to Capital Employed

0.82

EV to Sales

1.24

PEG Ratio

0.47

Dividend Yield

2.19%

ROCE (Latest)

3.57%

ROE (Latest)

2.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,162.62 MM

ROCE(HY)

Highest at 3.05%

RAW MATERIAL COST(Y)

Fallen by -32.03% (YoY

NET PROFIT(9M)

Higher at CNY 216.15 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.3 times

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 88.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.08 %

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

Net Profit

At CNY 216.15 MM has Grown at 91.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,162.62 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at CNY 216.15 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -32.03% (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 Runtu Co., Ltd.

Operating Profit

Lowest at CNY 88.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales