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

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 -8.33% and Operating profit at 0.37% over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 8.75%
DEBT-EQUITY RATIO (HY) Lowest at -51.58 %
RAW MATERIAL COST(Y) Fallen by -5.78% (YoY)

With ROE of 8.38%, it has a fair valuation with a 0.68 Price to Book Value

Over the past year, while the stock has generated a return of -16.66%, its profits have risen by 35.3% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 2.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.78% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.66% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Transtek Medical Electronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Transtek Medical Electronics Co., Ltd.

-16.66%

1.19

34.97%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.33%

EBIT Growth (5y)

0.37%

EBIT to Interest (avg)

14.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.76

Tax Ratio

2.70%

Dividend Payout Ratio

68.97%

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

0.68

EV to EBIT

1.92

EV to EBITDA

1.55

EV to Capital Employed

0.34

EV to Sales

0.18

PEG Ratio

0.23

Dividend Yield

2.22%

ROCE (Latest)

17.83%

ROE (Latest)

8.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

17What is working for the Company

ROCE(HY)

Highest at 8.75%

DEBT-EQUITY RATIO (HY)

Lowest at -51.58 %

RAW MATERIAL COST(Y)

Fallen by -5.78% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.95 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.17 times

NET SALES(Q)

Highest at CNY 283.74 MM

OPERATING PROFIT(Q)

Highest at CNY 35.27 MM

PRE-TAX PROFIT(Q)

Highest at CNY 32.56 MM

NET PROFIT(Q)

Highest at CNY 30.92 MM

EPS(Q)

Highest at CNY 0.15

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Debt-Equity Ratio

Lowest at -51.58 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CNY 283.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 35.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 32.56 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 30.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 9.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.78% (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