Suzhou TFC Optical Communication Co., Ltd. (300394) 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

Suzhou TFC Optical Communication Co., Ltd.

Why is Suzhou TFC Optical Communication Co., Ltd. ?

With a growth in Net Profit of 0.8%, the company declared Outstanding results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 1,720.16 MM
ROCE(HY) Highest at 41.89%
NET SALES(Q) At CNY 1,462.51 MM has Grown at 40.91%

Market Beating performance in long term as well as near term

Along with generating 376.39% 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 buy?

Overall Portfolio exposure to Suzhou TFC Optical Communication Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

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

Is Suzhou TFC Optical Communication Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou TFC Optical Communication Co., Ltd.

370.73%

2.74

89.06%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

43.09%

EBIT Growth (5y)

49.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

0.72

Tax Ratio

12.80%

Dividend Payout Ratio

29.45%

Pledged Shares

Institutional Holding

ROCE (avg)

51.53%

ROE (avg)

20.18%

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

28.84

EV to EBIT

78.02

EV to EBITDA

71.10

EV to Capital Employed

57.25

EV to Sales

31.98

PEG Ratio

Dividend Yield

0.55%

ROCE (Latest)

73.38%

ROE (Latest)

33.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly 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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,720.16 MM

ROCE(HY)

Highest at 41.89%

NET SALES(Q)

At CNY 1,462.51 MM has Grown at 40.91%

CASH AND EQV(HY)

Highest at CNY 5,233.89 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.14 times

OPERATING PROFIT(Q)

Highest at CNY 645.42 MM

PRE-TAX PROFIT(Q)

Highest at CNY 659.68 MM

NET PROFIT(Q)

Highest at CNY 566.7 MM

EPS(Q)

Highest at CNY 0.73

-6What is not working for the Company

INTEREST(9M)

At CNY 1.13 MM has Grown at 25.18%

RAW MATERIAL COST(Y)

Grown by 7.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -54.1 %

Here's what is working for Suzhou TFC Optical Communication Co., Ltd.

Operating Cash Flow

Highest at CNY 1,720.16 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 1,462.51 MM has Grown at 40.91%

over average net sales of the previous four periods of CNY 1,037.91 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 645.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 659.68 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 566.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 5,233.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Suzhou TFC Optical Communication Co., Ltd.

Interest

At CNY 1.13 MM has Grown at 25.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -54.1 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.47% (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