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

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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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 13.46% and Operating profit at -17.79% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 13.46% and Operating profit at -17.79% over the last 5 years

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

ROCE(HY) Lowest at 1.84%
NET SALES(Q) Lowest at CNY 392.84 MM
PRE-TAX PROFIT(Q) Fallen at -28.67%

With ROE of 1.32%, it has a expensive valuation with a 1.40 Price to Book Value

Over the past year, while the stock has generated a return of 17.57%, its profits have fallen by -56%
At the current price, the company has a high dividend yield of 0.4

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.

10.73%

0.86

50.73%

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)

13.46%

EBIT Growth (5y)

-17.79%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.86

Tax Ratio

5.68%

Dividend Payout Ratio

39.10%

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

106

Industry P/E

Price to Book Value

1.40

EV to EBIT

108.16

EV to EBITDA

28.39

EV to Capital Employed

1.35

EV to Sales

1.32

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

1.25%

ROE (Latest)

1.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 169.67 MM

RAW MATERIAL COST(Y)

Fallen by -31.72% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.85%

-14What is not working for the Company

ROCE(HY)

Lowest at 1.84%

NET SALES(Q)

Lowest at CNY 392.84 MM

PRE-TAX PROFIT(Q)

Fallen at -28.67%

NET PROFIT(Q)

Fallen at -30.15%

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

Operating Cash Flow

Highest at CNY 169.67 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 1.85%

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 -31.72% (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 Jiangsu Tongguang Electronic Wire & Cable Corp. Ltd.

Net Sales

Lowest at CNY 392.84 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -13.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -28.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -30.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)