Guangzhou Tinci Materials Technology Co., Ltd. (002709) 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

Guangzhou Tinci Materials Technology Co., Ltd.

Why is Guangzhou Tinci Materials Technology Co., Ltd. ?

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(9M) At CNY 346.68 MM has Grown at -51.17%
OPERATING CASH FLOW(Y) Lowest at CNY 769.17 MM
INTEREST(Q) At CNY 59.52 MM has Grown at 14.93%

With ROE of 3.43%, it has a very expensive valuation with a 4.58 Price to Book Value

Over the past year, while the stock has generated a return of 114.03%, its profits have fallen by -45.8%
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Tinci Materials Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Guangzhou Tinci Materials Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Tinci Materials Technology Co., Ltd.

67.81%

2.94

47.36%

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)

35.11%

EBIT Growth (5y)

14.09%

EBIT to Interest (avg)

40.51

Debt to EBITDA (avg)

1.34

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.78

Tax Ratio

26.54%

Dividend Payout Ratio

39.65%

Pledged Shares

Institutional Holding

ROCE (avg)

25.75%

ROE (avg)

22.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

4.58

EV to EBIT

92.69

EV to EBITDA

37.47

EV to Capital Employed

3.76

EV to Sales

4.54

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

4.06%

ROE (Latest)

3.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

NET SALES(HY)

At CNY 7,106 MM has Grown at 24.35%

RAW MATERIAL COST(Y)

Fallen by -9.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.36%

NET PROFIT(Q)

Highest at CNY 143 MM

EPS(Q)

Highest at CNY 0.08

-20What is not working for the Company

NET PROFIT(9M)

At CNY 346.68 MM has Grown at -51.17%

OPERATING CASH FLOW(Y)

Lowest at CNY 769.17 MM

INTEREST(Q)

At CNY 59.52 MM has Grown at 14.93%

INTEREST COVERAGE RATIO(Q)

Lowest at 369.92

OPERATING PROFIT MARGIN(Q)

Lowest at 6.34 %

DEBT-EQUITY RATIO (HY)

Highest at 43.18 %

OPERATING PROFIT(Q)

Lowest at CNY 220.19 MM

Here's what is working for Guangzhou Tinci Materials Technology Co., Ltd.

Net Sales

At CNY 7,106 MM has Grown at 24.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 143 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 8.36%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.61% (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 Guangzhou Tinci Materials Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 769.17 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 59.52 MM has Grown at 14.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 369.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 6.34 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at CNY 59.52 MM

in the last five periods and Increased by 14.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 220.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 43.18 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio