Centre Testing International Group Co., Ltd. (300012) 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

Centre Testing International Group Co., Ltd.

Why is Centre Testing International Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.00% and Operating profit at 11.31% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 9.76 MM has Grown at 33.04%
INTEREST COVERAGE RATIO(Q) Lowest at 3,604.1
INVENTORY TURNOVER RATIO(HY) Lowest at 26.68 times

With ROE of 13.72%, it has a very attractive valuation with a 2.66 Price to Book Value

Over the past year, while the stock has generated a return of 28.30%, its profits have risen by 16.2% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 1.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Centre Testing International Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Centre Testing International Group Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Centre Testing International Group Co., Ltd.

24.33%

0.96

30.47%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.00%

EBIT Growth (5y)

11.31%

EBIT to Interest (avg)

58.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.86

Tax Ratio

9.37%

Dividend Payout Ratio

32.98%

Pledged Shares

Institutional Holding

ROCE (avg)

18.46%

ROE (avg)

15.58%

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

2.66

EV to EBIT

18.63

EV to EBITDA

13.47

EV to Capital Employed

2.91

EV to Sales

2.93

PEG Ratio

1.20

Dividend Yield

1.60%

ROCE (Latest)

15.63%

ROE (Latest)

13.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,497.08 MM

RAW MATERIAL COST(Y)

Fallen by -5.79% (YoY

-14What is not working for the Company

INTEREST(HY)

At CNY 9.76 MM has Grown at 33.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,604.1

INVENTORY TURNOVER RATIO(HY)

Lowest at 26.68 times

OPERATING PROFIT(Q)

Lowest at CNY 174.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.69 %

Here's what is working for Centre Testing International Group Co., Ltd.

Operating Cash Flow

Highest at CNY 1,497.08 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)

Raw Material Cost

Fallen by -5.79% (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 Centre Testing International Group Co., Ltd.

Interest

At CNY 9.76 MM has Grown at 33.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,604.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 174.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 26.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio