Ningbo TIP Rubber Technology Co., Ltd (605255) 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 TIP Rubber Technology Co., Ltd

Why is Ningbo TIP Rubber Technology Co., Ltd ?

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 0.19% and Operating profit at -9.37% 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 4.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.19% and Operating profit at -9.37% over the last 5 years

Flat results in Mar 25

INTEREST(9M) At CNY 0.72 MM has Grown at 93.94%
OPERATING PROFIT(Q) Lowest at CNY 9.21 MM
OPERATING PROFIT MARGIN(Q) Lowest at 11.62 %

With ROE of 3.79%, it has a very attractive valuation with a 4.61 Price to Book Value

Over the past year, while the stock has generated a return of 966.28%, its profits have risen by 12.9% ; the PEG ratio of the company is 9.5
At the current price, the company has a high dividend yield of 1.3

Market Beating performance in long term as well as near term

Along with generating 966.28% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo TIP Rubber Technology 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 TIP Rubber Technology Co., Ltd for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo TIP Rubber Technology Co., Ltd

966.28%

15.10

74.03%

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)

0.19%

EBIT Growth (5y)

-9.37%

EBIT to Interest (avg)

36.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

0.40

Tax Ratio

35.82%

Dividend Payout Ratio

150.04%

Pledged Shares

Institutional Holding

ROCE (avg)

5.90%

ROE (avg)

4.20%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

122

Industry P/E

Price to Book Value

4.61

EV to EBIT

87.16

EV to EBITDA

40.31

EV to Capital Employed

5.48

EV to Sales

10.84

PEG Ratio

9.47

Dividend Yield

1.33%

ROCE (Latest)

6.29%

ROE (Latest)

3.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

ROCE(HY)

Highest at 3.82%

RAW MATERIAL COST(Y)

Fallen by -20.57% (YoY

NET PROFIT(9M)

Higher at CNY 28.03 MM

DEBT-EQUITY RATIO (HY)

Lowest at -21.73 %

-7What is not working for the Company

INTEREST(9M)

At CNY 0.72 MM has Grown at 93.94%

OPERATING PROFIT(Q)

Lowest at CNY 9.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.62 %

Here's what is working for Ningbo TIP Rubber Technology Co., Ltd

Debt-Equity Ratio

Lowest at -21.73 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Profit

Higher at CNY 28.03 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -20.57% (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 TIP Rubber Technology Co., Ltd

Interest

At CNY 0.72 MM has Grown at 93.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 9.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales