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 11.66% and Operating profit at -38.55% 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 11.66% and Operating profit at -38.55% over the last 5 years

Flat 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 1.16%, it has a very expensive valuation with a 3.81 Price to Book Value

Over the past year, while the stock has generated a return of 136.14%, its profits have fallen by -55%
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.

136.14%

2.51

77.36%

China Shanghai Composite

22.54%

1.68

13.39%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.66%

EBIT Growth (5y)

-38.55%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.87

Tax Ratio

5.68%

Dividend Payout Ratio

28.57%

Pledged Shares

Institutional Holding

ROCE (avg)

4.35%

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

327

Industry P/E

Price to Book Value

3.81

EV to EBIT

922.56

EV to EBITDA

115.84

EV to Capital Employed

3.50

EV to Sales

3.45

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

0.38%

ROE (Latest)

1.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

5What is working for the Company

NET PROFIT(HY)

At CNY 4.47 MM has Grown at 117.28%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.01 times

NET SALES(Q)

At CNY 499.29 MM has Grown at 26%

-9What is not working for the Company

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 %

RAW MATERIAL COST(Y)

Grown by 25.12% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 5.26 MM

Here's what is working for Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

Net Profit

At CNY 4.47 MM has Grown at 117.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 499.29 MM has Grown at 26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.01 times

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 Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

Interest Coverage Ratio

Lowest at 277.38 and Fallen

In each period 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 1.05 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY 150.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (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)

Raw Material Cost

Grown by 25.12% (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