Guangdong Transtek Medical Electronics Co., Ltd. (300562) 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

Guangdong Transtek Medical Electronics Co., Ltd.

Why is Guangdong Transtek Medical Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.04%

The company has been able to generate a Return on Capital Employed (avg) of 5.04% 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 0.52% and Operating profit at 11.03% over the last 5 years

Flat results in Jun 25

INTEREST(9M) At CNY 4.33 MM has Grown at 71.04%
RAW MATERIAL COST(Y) Grown by 13.02% (YoY)

With ROE of 6.35%, it has a expensive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of 4.24%, its profits have risen by 18.2% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2

Underperformed the market in the last 1 year

The stock has generated a return of 4.24% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

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 Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guangdong Transtek Medical Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Transtek Medical Electronics Co., Ltd.

-100.0%

1.40

51.25%

China Shanghai Composite

15.19%

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)

0.52%

EBIT Growth (5y)

11.03%

EBIT to Interest (avg)

14.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.72

Tax Ratio

2.70%

Dividend Payout Ratio

98.35%

Pledged Shares

Institutional Holding

ROCE (avg)

5.04%

ROE (avg)

3.73%

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

0.87

EV to EBIT

8.26

EV to EBITDA

5.75

EV to Capital Employed

0.77

EV to Sales

0.43

PEG Ratio

0.75

Dividend Yield

1.98%

ROCE (Latest)

9.26%

ROE (Latest)

6.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 144.12 MM

ROCE(HY)

Highest at 6.73%

INTEREST COVERAGE RATIO(Q)

Highest at 3,328.82

DIVIDEND PAYOUT RATIO(Y)

Highest at 144.93%

CASH AND EQV(HY)

Highest at CNY 1,521.74 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.13%

OPERATING PROFIT MARGIN(Q)

Highest at 10.54 %

-5What is not working for the Company

INTEREST(9M)

At CNY 4.33 MM has Grown at 71.04%

RAW MATERIAL COST(Y)

Grown by 13.02% (YoY

Here's what is working for Guangdong Transtek Medical Electronics Co., Ltd.

Operating Cash Flow

Highest at CNY 144.12 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)

Interest Coverage Ratio

Highest at 3,328.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 10.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 1,521.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 8.13%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 144.93%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CNY 7.95 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

Depreciation

At CNY 7.95 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Guangdong Transtek Medical Electronics Co., Ltd.

Interest

At CNY 4.33 MM has Grown at 71.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 13.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales