Why is China Testing & Certification International Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.08% and Operating profit at -9.83% over the last 5 years
2
With a fall in Net Sales of -7.51%, the company declared Very Negative results in Dec 25
- The company has declared negative results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 81.25 MM
- ROCE(HY) Lowest at 5.24%
- PRE-TAX PROFIT(Q) At CNY 124.16 MM has Fallen at -44.12%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.71% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is China Testing & Certification International Group Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
China Testing & Certification International Group Co., Ltd.
2.56%
0.18
25.10%
China Shanghai Composite
23.91%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
9.76%
EBIT Growth (5y)
-11.36%
EBIT to Interest (avg)
18.47
Debt to EBITDA (avg)
1.41
Net Debt to Equity (avg)
0.72
Sales to Capital Employed (avg)
0.73
Tax Ratio
12.70%
Dividend Payout Ratio
45.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.04%
ROE (avg)
19.24%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
2.81
EV to EBIT
41.31
EV to EBITDA
20.57
EV to Capital Employed
2.12
EV to Sales
2.73
PEG Ratio
NA
Dividend Yield
1.56%
ROCE (Latest)
5.12%
ROE (Latest)
8.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 329.46 MM
RAW MATERIAL COST(Y)
Fallen by -11.55% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 71.07 %
-16What is not working for the Company
NET PROFIT(HY)
At CNY 54.09 MM has Grown at -47.41%
ROCE(HY)
Lowest at 5.96%
INVENTORY TURNOVER RATIO(HY)
Lowest at 10.78 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.57 times
OPERATING PROFIT(Q)
Lowest at CNY -33.23 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -6.44 %
Here's what is working for China Testing & Certification International Group Co., Ltd.
Operating Cash Flow
Highest at CNY 329.46 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at 71.07 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -11.55% (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 China Testing & Certification International Group Co., Ltd.
Net Profit
At CNY 54.09 MM has Grown at -47.41%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 10.78 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 1.57 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Profit
Lowest at CNY -33.23 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -6.44 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






