Henan Tong-da Cable Co., Ltd. (002560) 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

Henan Tong-da Cable Co., Ltd.

Why is Henan Tong-da Cable Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.55%

The company has been able to generate a Return on Capital Employed (avg) of 3.55% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 32.49% and Operating profit at 12.71% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 32.49% and Operating profit at 12.71% over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 645.11 MM
NET SALES(9M) At CNY 5,987.97 MM has Grown at 18.9%
NET PROFIT(HY) At CNY 64.02 MM has Grown at 70.68%

With ROE of 6.84%, it has a attractive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of 36.23%, its profits have risen by 81.9% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.7

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 Electronics & Appliances)

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

Is Henan Tong-da Cable Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Tong-da Cable Co., Ltd.

34.79%

0.60

61.11%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.49%

EBIT Growth (5y)

12.71%

EBIT to Interest (avg)

3.01

Debt to EBITDA (avg)

4.18

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.45

Tax Ratio

13.18%

Dividend Payout Ratio

23.18%

Pledged Shares

Institutional Holding

ROCE (avg)

3.73%

ROE (avg)

2.97%

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

2.03

EV to EBIT

30.72

EV to EBITDA

22.54

EV to Capital Employed

1.77

EV to Sales

0.80

PEG Ratio

0.36

Dividend Yield

0.67%

ROCE (Latest)

5.77%

ROE (Latest)

6.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 459.76 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.93 times

-22What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 203.46

RAW MATERIAL COST(Y)

Grown by 38.13% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 16.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.73 %

PRE-TAX PROFIT(Q)

Lowest at CNY -20.49 MM

NET PROFIT(Q)

Lowest at CNY -17.15 MM

EPS(Q)

Lowest at CNY -0

Here's what is working for Henan Tong-da Cable Co., Ltd.

Operating Cash Flow

Highest at CNY 459.76 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)

Debtors Turnover Ratio

Highest at 3.93 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Henan Tong-da Cable Co., Ltd.

Pre-Tax Profit

At CNY -20.49 MM has Fallen at -137.73%

over average net sales of the previous four periods of CNY 54.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -17.15 MM has Fallen at -138.11%

over average net sales of the previous four periods of CNY 45 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 203.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 16.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -20.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -17.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 38.13% (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

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