Changsha Tongcheng Holdings Co., Ltd. (000419) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Changsha Tongcheng Holdings Co., Ltd.

Why is Changsha Tongcheng Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.54%

The company has been able to generate a Return on Capital Employed (avg) of 4.54% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -6.49% and Operating profit at -7.40% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 506.41
PRE-TAX PROFIT(Q) At CNY 26.37 MM has Fallen at -60.83%
NET PROFIT(Q) At CNY 8.46 MM has Fallen at -77.87%

With ROE of 3.72%, it has a fair valuation with a 0.85 Price to Book Value

Over the past year, while the stock has generated a return of 13.64%, its profits have fallen by -17.5%
At the current price, the company has a high dividend yield of 2.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Changsha Tongcheng Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Changsha Tongcheng Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Changsha Tongcheng Holdings Co., Ltd.

6.39%

1.29

37.03%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.49%

EBIT Growth (5y)

-7.40%

EBIT to Interest (avg)

5.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.50

Tax Ratio

19.32%

Dividend Payout Ratio

54.27%

Pledged Shares

Institutional Holding

ROCE (avg)

4.54%

ROE (avg)

5.23%

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

0.85

EV to EBIT

24.67

EV to EBITDA

11.76

EV to Capital Employed

0.84

EV to Sales

1.28

PEG Ratio

Dividend Yield

2.62%

ROCE (Latest)

3.41%

ROE (Latest)

3.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 450.22 MM

RAW MATERIAL COST(Y)

Fallen by -15.74% (YoY

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 506.41

PRE-TAX PROFIT(Q)

At CNY 26.37 MM has Fallen at -60.83%

NET PROFIT(Q)

At CNY 8.46 MM has Fallen at -77.87%

DEBTORS TURNOVER RATIO(HY)

Lowest at 26.35%

OPERATING PROFIT(Q)

Lowest at CNY 31.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.22 %

Here's what is working for Changsha Tongcheng Holdings Co., Ltd.

Operating Cash Flow

Highest at CNY 450.22 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 -15.74% (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 Changsha Tongcheng Holdings Co., Ltd.

Interest Coverage Ratio

Lowest at 506.41 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 26.37 MM has Fallen at -60.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.46 MM has Fallen at -77.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 31.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 26.35%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio