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2642

Ronglian Group SZSE:002642 Stock Report

Last Price

CN¥5.34

Market Cap

CN¥3.2b

7D

11.0%

1Y

20.0%

Updated

18 May, 2022

Data

Company Financials
2642 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

2642 Stock Overview

Ronglian Group Ltd. provides IT solutions in China and internationally.

Rewards

Became profitable this year

Risk Analysis

No risks detected for 2642 from our risk checks.

Ronglian Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Ronglian Group
Historical stock prices
Current Share PriceCN¥5.34
52 Week HighCN¥8.79
52 Week LowCN¥4.18
Beta-0.069
1 Month Change-3.26%
3 Month Change-26.75%
1 Year Change20.00%
3 Year Change19.73%
5 Year Change-78.69%
Change since IPO-17.05%

Recent News & Updates

Shareholder Returns

2642CN ITCN Market
7D11.0%0.6%1.1%
1Y20.0%-19.0%-15.4%

Return vs Industry: 002642 exceeded the CN IT industry which returned -19% over the past year.

Return vs Market: 002642 exceeded the CN Market which returned -15.4% over the past year.

Price Volatility

Is 2642's price volatile compared to industry and market?
2642 volatility
2642 Average Weekly Movement7.0%
IT Industry Average Movement7.5%
Market Average Movement7.4%
10% most volatile stocks in CN Market10.3%
10% least volatile stocks in CN Market5.3%

Stable Share Price: 002642 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 002642's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001779Tong Zhanghttps://www.ronglian.com

Ronglian Group Ltd. provides IT solutions in China and internationally. It provides infrastructure and data center solutions, such as IT planning, application and system integration, professional operation and maintenance, and specialized services; virtualization, and private and hybrid cloud services; and B2B, smart city, and operation services. The company also offers enterprise cloud services, such as cloud planning and design, service migration, resource management, integration development, and operation monitoring services, as well as industry cloud solutions, such as insurance, exploration, and education.

Ronglian Group Fundamentals Summary

How do Ronglian Group's earnings and revenue compare to its market cap?
2642 fundamental statistics
Market CapCN¥3.24b
Earnings (TTM)CN¥56.76m
Revenue (TTM)CN¥3.63b

62.8x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2642 income statement (TTM)
RevenueCN¥3.63b
Cost of RevenueCN¥3.18b
Gross ProfitCN¥446.62m
Other ExpensesCN¥389.86m
EarningsCN¥56.76m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.085
Gross Margin12.30%
Net Profit Margin1.56%
Debt/Equity Ratio19.6%

How did 2642 perform over the long term?

See historical performance and comparison

Valuation

Is Ronglian Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


62.78x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 002642's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 002642's fair value for valuation analysis.


Price To Earnings Ratio

PE vs Industry: 002642 is poor value based on its PE Ratio (62.8x) compared to the CN IT industry average (39.9x).

PE vs Market: 002642 is poor value based on its PE Ratio (62.8x) compared to the CN market (30.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 002642's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 002642's PB Ratio (2.4x) is in line with the CN IT industry average.


Future Growth

How is Ronglian Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.2%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ronglian Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Ronglian Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-18.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002642 has high quality earnings.

Growing Profit Margin: 002642 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 002642 has become profitable over the past 5 years, growing earnings by -18.8% per year.

Accelerating Growth: 002642 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 002642 has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (0.6%).


Return on Equity

High ROE: 002642's Return on Equity (3.8%) is considered low.


Financial Health

How is Ronglian Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002642's short term assets (CN¥2.3B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 002642's short term assets (CN¥2.3B) exceed its long term liabilities (CN¥26.4M).


Debt to Equity History and Analysis

Debt Level: 002642 has more cash than its total debt.

Reducing Debt: 002642's debt to equity ratio has increased from 13.3% to 19.6% over the past 5 years.

Debt Coverage: 002642's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: 002642's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Dividend

What is Ronglian Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 002642's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 002642's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 002642's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 002642's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 002642 is not paying a notable dividend for the CN market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 002642 has not reported any payouts.


Next Steps

Management

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

1.5yrs

Average board tenure


CEO

Tong Zhang

no data

Tenure

CN¥600,000

Compensation

Ms. Tong Zhang serves as the Chief Executive Officer of Ronglian Group Ltd. (formerly known as UEC Group Ltd.). (United Electronics Co., Ltd.) and served as its Director Ms. Zhang joined UEC in 2005, with...


Board Members

Experienced Board: 002642's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

Ronglian Group Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ronglian Group Ltd.
  • Ticker: 2642
  • Exchange: SZSE
  • Founded: 2001
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: CN¥3.236b
  • Shares outstanding: 667.25m
  • Website: https://www.ronglian.com

Number of Employees


Location

  • Ronglian Group Ltd.
  • Building 106
  • UEC Plaza
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.