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6036

Red Avenue New Materials GroupSHSE:603650 Stock Report

Market Cap

CN¥31.9b

7D

2.6%

1Y

62.5%

Updated

24 Sep, 2021

Data

Company Financials +
603650 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance5/6
Financial Health3/6
Dividends2/6

603650 Overview

Red Avenue New Materials Group Co., Ltd. manufactures and sells chemical materials in China and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Red Avenue New Materials Group
Historical stock prices
Current Share PriceCN¥54.40
52 Week HighCN¥28.00
52 Week LowCN¥78.45
Beta0.13
1 Month Change-15.07%
3 Month Change13.95%
1 Year Change62.53%
3 Year Change100.22%
5 Year Changen/a
Change since IPO206.65%

Recent News & Updates

Shareholder Returns

603650CN ChemicalsCN Market
7D2.6%-2.2%0.6%
1Y62.5%78.0%13.7%

Return vs Industry: 603650 underperformed the CN Chemicals industry which returned 78% over the past year.

Return vs Market: 603650 exceeded the CN Market which returned 13.7% over the past year.

Price Volatility

Is 603650's price volatile compared to industry and market?
603650 volatility
603650 Beta0.13
Industry Beta0.77
Market Beta1

Stable Share Price: 603650 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 603650's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

FoundedEmployeesCEOWebsite
1999609n/ahttps://www.rachem.com

Red Avenue New Materials Group Co., Ltd. manufactures and sells chemical materials in China and internationally. The company offers tackifying resins, phenol-formaldehyde reinforcing products, adhesion promoter resins, bonding agents, curing resins, and additives.

Red Avenue New Materials Group Fundamentals Summary

How do Red Avenue New Materials Group's earnings and revenue compare to its market cap?
603650 fundamental statistics
Market CapCN¥31.89b
Earnings (TTM)CN¥467.57m
Revenue (TTM)CN¥2.28b

68.2x

P/E Ratio

14.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
603650 income statement (TTM)
RevenueCN¥2.28b
Cost of RevenueCN¥1.52b
Gross ProfitCN¥756.43m
ExpensesCN¥288.85m
EarningsCN¥467.57m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.80
Gross Margin33.25%
Net Profit Margin20.55%
Debt/Equity Ratio87.9%

How did 603650 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Red Avenue New Materials Group undervalued compared to its fair value and its price relative to the market?

68.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 603650 (CN¥54.4) is trading above our estimate of fair value (CN¥11.08)

Significantly Below Fair Value: 603650 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 603650 is poor value based on its PE Ratio (68.2x) compared to the CN Chemicals industry average (35.5x).

PE vs Market: 603650 is poor value based on its PE Ratio (68.2x) compared to the CN market (35.1x).


Price to Earnings Growth Ratio

PEG Ratio: 603650 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 603650 is overvalued based on its PB Ratio (12.9x) compared to the CN Chemicals industry average (3.5x).


Future Growth

How is Red Avenue New Materials Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603650's forecast earnings growth (29.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 603650's earnings (29.5% per year) are forecast to grow faster than the CN market (23% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603650's revenue (26.9% per year) is forecast to grow faster than the CN market (18.1% per year).

High Growth Revenue: 603650's revenue (26.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 603650's Return on Equity is forecast to be high in 3 years time (25.2%)


Past Performance

How has Red Avenue New Materials Group performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 603650 has high quality earnings.

Growing Profit Margin: 603650's current net profit margins (20.6%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: 603650's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: 603650's earnings growth over the past year (68.5%) exceeds its 5-year average (6% per year).

Earnings vs Industry: 603650 earnings growth over the past year (68.5%) exceeded the Chemicals industry 36.5%.


Return on Equity

High ROE: 603650's Return on Equity (18.5%) is considered low.


Financial Health

How is Red Avenue New Materials Group's financial position?


Financial Position Analysis

Short Term Liabilities: 603650's short term assets (CN¥2.4B) exceed its short term liabilities (CN¥1.8B).

Long Term Liabilities: 603650's short term assets (CN¥2.4B) exceed its long term liabilities (CN¥1.1B).


Debt to Equity History and Analysis

Debt Level: 603650's debt to equity ratio (87.9%) is considered high.

Reducing Debt: 603650's debt to equity ratio has increased from 51.4% to 87.9% over the past 5 years.

Debt Coverage: 603650's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: 603650 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Red Avenue New Materials Group current dividend yield, its reliability and sustainability?

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 603650's dividend (0.62%) is higher than the bottom 25% of dividend payers in the CN market (0.41%).

High Dividend: 603650's dividend (0.62%) is low compared to the top 25% of dividend payers in the CN market (1.76%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 603650 has been paying a dividend for less than 10 years.

Growing Dividend: 603650 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), 603650's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Red Avenue New Materials Group has no CEO, or we have no data on them.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Red Avenue New Materials Group Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Red Avenue New Materials Group Co., Ltd.
  • Ticker: 603650
  • Exchange: SHSE
  • Founded: 1999
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CN¥31.889b
  • Shares outstanding: 585.99m
  • Website: https://www.rachem.com

Number of Employees


Location

  • Red Avenue New Materials Group Co., Ltd.
  • Shanghai Tower
  • 25th Floor
  • Shanghai
  • 200120
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 09:04
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.