Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd. (300265) 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

Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

Why is Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 4.35%

The company has been able to generate a Return on Capital Employed (avg) of 4.35% 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 11.45% and Operating profit at -28.74% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.45% and Operating profit at -28.74% over the last 5 years

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 277.38
OPERATING CASH FLOW(Y) Lowest at CNY 150.36 MM
OPERATING PROFIT MARGIN(Q) Lowest at 1.05 %

With ROE of 1.29%, it has a very expensive valuation with a 3.40 Price to Book Value

Over the past year, while the stock has generated a return of 76.61%, its profits have fallen by -36.5%
At the current price, the company has a high dividend yield of 0.2

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 Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

41.87%

1.88

81.06%

China Shanghai Composite

0.9%

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)

11.45%

EBIT Growth (5y)

-28.74%

EBIT to Interest (avg)

2.63

Debt to EBITDA (avg)

2.15

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.86

Tax Ratio

13.99%

Dividend Payout Ratio

28.57%

Pledged Shares

Institutional Holding

ROCE (avg)

3.07%

ROE (avg)

4.56%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

337

Industry P/E

Price to Book Value

4.35

EV to EBIT

499.39

EV to EBITDA

104.56

EV to Capital Employed

4.15

EV to Sales

3.93

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

0.83%

ROE (Latest)

1.29%

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

Bullish

Dow Theory

Mildly Bullish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-28What is not working for the Company

ROCE(HY)

Lowest at -0.22%

INTEREST(Q)

At CNY 2.73 MM has Grown at 43.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 192.57

RAW MATERIAL COST(Y)

Grown by 29.51% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.19 times

NET SALES(Q)

Fallen at -10.7%

OPERATING PROFIT(Q)

Lowest at CNY 5.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.71 %

PRE-TAX PROFIT(Q)

Lowest at CNY -23.74 MM

NET PROFIT(Q)

Lowest at CNY -23.12 MM

EPS(Q)

Lowest at CNY -0.05

Here's what is not working for Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

Pre-Tax Profit

At CNY -23.74 MM has Fallen at -290.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -23.12 MM has Fallen at -262.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.73 MM has Grown at 43.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 192.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -10.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 5.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -23.74 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 -23.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 6.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 29.51% (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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