NEW YORK (TheStreet) -- Qunar Cayman Islands  (QUNR) stock is plunging by 15.42% to $44.61 on heavy volume in afternoon trading on Monday, as the company appoints a new CEO, CFO and COO.

Zhenyu Chen, Qunar's executive vice president and head of mobile business group, will succeed Chenchao Zhuang as CEO.

Xiaolu Zhu, Qunar's senior director of strategy and investor relations, will succeed Yilu Zhao as CFO, and Qiang Zhang, Qunar's executive vice president and head of destination services business group, will assume the role of COO.

The changes are effective as of today.

Additionally, the Shanghai Composite Index closed down nearly 7% after China's Caixin December manufacturing Purchasing Managers' Index declined to 48.2 from 48.6 in November. A reading below 50 signals a contraction within manufacturing activity.

The decline is further weighing on shares of the Beijing-based mobile and online travel platform.

About 2.88 million shares of the company have been traded so far today, well above Qunar's average trading volume of roughly 1.83 million shares per day.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate QUNAR CAYMAN ISLANDS -ADR as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally high debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • QUNAR CAYMAN ISLANDS -ADR's earnings per share declined by 11.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, QUNAR CAYMAN ISLANDS -ADR reported poor results of -$2.53 versus -$0.24 in the prior year. For the next year, the market is expecting a contraction of 591.3% in earnings (-$17.49 versus -$2.53).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet & Catalog Retail industry average. The net income has significantly decreased by 25.3% when compared to the same quarter one year ago, falling from -$92.25 million to -$115.62 million.
  • The debt-to-equity ratio is very high at 2.91 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, QUNR's quick ratio is somewhat strong at 1.45, demonstrating the ability to handle short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, QUNAR CAYMAN ISLANDS -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QUNAR CAYMAN ISLANDS -ADR is rather high; currently it is at 64.57%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QUNR's net profit margin of -55.45% significantly underperformed when compared to the industry average.
  • You can view the full analysis from the report here: QUNR