Ningbo Tianlong Electronics Co., Ltd. (603266) 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

Ningbo Tianlong Electronics Co., Ltd.

Why is Ningbo Tianlong Electronics Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.22% and Operating profit at 11.08% over the last 5 years

Flat results in Mar 25

ROCE(HY) Lowest at 6.86%
INTEREST COVERAGE RATIO(Q) Lowest at 5,458.88
DEBTORS TURNOVER RATIO(HY) Lowest at 2.28%

With ROE of 7.06%, it has a fair valuation with a 0.83 Price to Book Value

Over the past year, while the stock has generated a return of 6.70%, its profits have fallen by -7.9%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Tianlong Electronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Ningbo Tianlong Electronics Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Tianlong Electronics Co., Ltd.

6.7%

0.43

45.66%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.22%

EBIT Growth (5y)

11.08%

EBIT to Interest (avg)

66.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.81

Tax Ratio

8.01%

Dividend Payout Ratio

30.69%

Pledged Shares

Institutional Holding

ROCE (avg)

9.96%

ROE (avg)

8.19%

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

0.83

EV to EBIT

8.54

EV to EBITDA

4.94

EV to Capital Employed

0.78

EV to Sales

0.72

PEG Ratio

Dividend Yield

0.65%

ROCE (Latest)

9.18%

ROE (Latest)

7.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 221.27 MM

RAW MATERIAL COST(Y)

Fallen by -6.09% (YoY

CASH AND EQV(HY)

Highest at CNY 969.56 MM

DEBT-EQUITY RATIO (HY)

Lowest at -18.92 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.38%

-10What is not working for the Company

ROCE(HY)

Lowest at 6.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,458.88

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.28%

NET SALES(Q)

Lowest at CNY 301.94 MM

OPERATING PROFIT(Q)

Lowest at CNY 26.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.77 %

PRE-TAX PROFIT(Q)

Lowest at CNY 29.65 MM

Here's what is working for Ningbo Tianlong Electronics Co., Ltd.

Operating Cash Flow

Highest at CNY 221.27 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)

Cash and Eqv

Highest at CNY 969.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -18.92 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.38%

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 -6.09% (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 Ningbo Tianlong Electronics Co., Ltd.

Interest Coverage Ratio

Lowest at 5,458.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 301.94 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 301.94 MM has Fallen at -11.19%

over average net sales of the previous four periods of CNY 339.99 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 26.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 29.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.28%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio