Why is Shijiazhuang Tonhe Electronics Technologies Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.16%
- The company has been able to generate a Return on Capital Employed (avg) of 3.16% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 35.83% and Operating profit at -9.01% over the last 5 years
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 149.88 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 3.35 times
- DEBT-EQUITY RATIO (HY) Lowest at 4.42 %
4
With ROE of 3.81%, it has a fair valuation with a 1.32 Price to Book Value
- Over the past year, while the stock has generated a return of 149.82%, its profits have risen by 82.1% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 1.6
5
Market Beating performance in long term as well as near term
- Along with generating 149.82% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Shijiazhuang Tonhe Electronics Technologies 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 Shijiazhuang Tonhe Electronics Technologies Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shijiazhuang Tonhe Electronics Technologies Co., Ltd.
130.97%
2.72
68.23%
China Shanghai Composite
23.91%
1.73
13.79%
Quality key factors
Factor
Value
Sales Growth (5y)
35.83%
EBIT Growth (5y)
-9.01%
EBIT to Interest (avg)
7.44
Debt to EBITDA (avg)
0.96
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.83
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
35.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.16%
ROE (avg)
5.20%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
1.32
EV to EBIT
74.86
EV to EBITDA
31.52
EV to Capital Employed
1.30
EV to Sales
1.00
PEG Ratio
0.42
Dividend Yield
1.62%
ROCE (Latest)
1.74%
ROE (Latest)
3.81%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 149.88 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.35 times
DEBT-EQUITY RATIO
(HY)
Lowest at 4.42 %
DEBTORS TURNOVER RATIO(HY)
Highest at 1.66 times
NET SALES(Q)
At CNY 290.54 MM has Grown at 40.19%
PRE-TAX PROFIT(Q)
At CNY -0.56 MM has Grown at 93.75%
NET PROFIT(Q)
At CNY -0.31 MM has Grown at 95.26%
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 15.62% (YoY
Here's what is working for Shijiazhuang Tonhe Electronics Technologies Co., Ltd.
Operating Cash Flow
Highest at CNY 149.88 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Inventory Turnover Ratio
Highest at 3.35 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At CNY 290.54 MM has Grown at 40.19%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -0.56 MM has Grown at 93.75%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -0.31 MM has Grown at 95.26%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at 4.42 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 1.66 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Shijiazhuang Tonhe Electronics Technologies Co., Ltd.
Raw Material Cost
Grown by 15.62% (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






