Qingdao Tianneng Heavy Industries Co., Ltd. (300569) 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

Qingdao Tianneng Heavy Industries Co., Ltd.

Why is Qingdao Tianneng Heavy Industries Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.33% and Operating profit at -16.82% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.33% and Operating profit at -16.82% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 334.73 MM
NET PROFIT(HY) Higher at CNY 59.22 MM
NET SALES(Q) At CNY 812.35 MM has Grown at 43.92%

With ROE of 1.87%, it has a attractive valuation with a 0.94 Price to Book Value

Over the past year, while the stock has generated a return of -5.15%, its profits have risen by 139% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.6

Below par performance in long term as well as near term

Along with generating -5.15% returns in the last 1 year, the stock has also underperformed 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 Qingdao Tianneng Heavy Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Qingdao Tianneng Heavy Industries Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qingdao Tianneng Heavy Industries Co., Ltd.

-12.32%

0.25

39.43%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.33%

EBIT Growth (5y)

-16.82%

EBIT to Interest (avg)

2.51

Debt to EBITDA (avg)

6.84

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.39

Tax Ratio

1.78%

Dividend Payout Ratio

25.74%

Pledged Shares

Institutional Holding

ROCE (avg)

7.08%

ROE (avg)

8.12%

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

0.94

EV to EBIT

29.58

EV to EBITDA

15.78

EV to Capital Employed

0.96

EV to Sales

2.00

PEG Ratio

0.39

Dividend Yield

0.57%

ROCE (Latest)

3.26%

ROE (Latest)

1.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 334.73 MM

NET PROFIT(HY)

Higher at CNY 59.22 MM

NET SALES(Q)

At CNY 812.35 MM has Grown at 43.92%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.46 times

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 202.67

OPERATING PROFIT MARGIN(Q)

Lowest at 9.7 %

RAW MATERIAL COST(Y)

Grown by 47.4% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 78.79 MM

NET PROFIT(Q)

Fallen at -25.85%

Here's what is working for Qingdao Tianneng Heavy Industries Co., Ltd.

Operating Cash Flow

Highest at CNY 334.73 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)

Net Sales

At CNY 812.35 MM has Grown at 43.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 1.46 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 Qingdao Tianneng Heavy Industries Co., Ltd.

Interest Coverage Ratio

Lowest at 202.67

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 9.7 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 78.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Fallen at -25.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 47.4% (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