Fujian Torch Electron Technology Co., Ltd. (603678) 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

Fujian Torch Electron Technology Co., Ltd.

Why is Fujian Torch Electron Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.84% and Operating profit at -10.41% over the last 5 years

The company has declared Negative results for the last 14 consecutive quarters

NET SALES(9M) At CNY 2,117.14 MM has Grown at -17.34%
OPERATING CASH FLOW(Y) Lowest at CNY 445.26 MM
NET PROFIT(HY) At CNY 75.28 MM has Grown at -25.09%

With ROE of 4.56%, it has a fair valuation with a 2.83 Price to Book Value

Over the past year, while the stock has generated a return of -1.07%, its profits have risen by 32.8% ; the PEG ratio of the company is 1.9
At the current price, the company has a high dividend yield of 0.3

Below par performance in long term as well as near term

Along with generating -1.07% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fujian Torch Electron Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Fujian Torch Electron Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Torch Electron Technology Co., Ltd.

-1.07%

0.65

43.80%

China Shanghai Composite

12.36%

0.86

14.45%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.84%

EBIT Growth (5y)

-10.41%

EBIT to Interest (avg)

19.58

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.47

Tax Ratio

18.01%

Dividend Payout Ratio

30.23%

Pledged Shares

Institutional Holding

ROCE (avg)

13.44%

ROE (avg)

12.20%

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

2.83

EV to EBIT

54.46

EV to EBITDA

30.42

EV to Capital Employed

2.82

EV to Sales

5.58

PEG Ratio

1.94

Dividend Yield

0.34%

ROCE (Latest)

5.17%

ROE (Latest)

4.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -23.96% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 124.81 MM

NET PROFIT(Q)

Highest at CNY 106.47 MM

EPS(Q)

Highest at CNY 0.23

-15What is not working for the Company

NET SALES(9M)

At CNY 2,117.14 MM has Grown at -17.34%

OPERATING CASH FLOW(Y)

Lowest at CNY 445.26 MM

NET PROFIT(HY)

At CNY 75.28 MM has Grown at -25.09%

ROCE(HY)

Lowest at 4.07%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.55%

INTEREST(Q)

Highest at CNY 9.82 MM

Here's what is working for Fujian Torch Electron Technology Co., Ltd.

Pre-Tax Profit

At CNY 124.81 MM has Grown at 133.41%

over average net sales of the previous four periods of CNY 53.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 106.47 MM has Grown at 118.29%

over average net sales of the previous four periods of CNY 48.77 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 124.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 106.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -23.96% (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 Fujian Torch Electron Technology Co., Ltd.

Net Sales

At CNY 2,117.14 MM has Grown at -17.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 445.26 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 9.82 MM has Grown at 12.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 9.82 MM

in the last five periods and Increased by 12.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.55%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio