Tansun Technology Co., Ltd. (300872) 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

Tansun Technology Co., Ltd.

Why is Tansun Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.63%

The company has been able to generate a Return on Capital Employed (avg) of 1.63% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 8.60% and Operating profit at 12.37% over the last 5 years

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

NET SALES(HY) At CNY 843.01 MM has Grown at -14.56%
PRE-TAX PROFIT(Q) At CNY 32.06 MM has Fallen at -67.03%
NET PROFIT(Q) At CNY 25.6 MM has Fallen at -71.88%

With ROE of 0.97%, it has a very expensive valuation with a 2.59 Price to Book Value

Over the past year, while the stock has generated a return of 21.66%, its profits have fallen by -81.6%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tansun Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Tansun Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tansun Technology Co., Ltd.

16.3%

1.16

63.37%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.60%

EBIT Growth (5y)

12.37%

EBIT to Interest (avg)

0.46

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.50

Tax Ratio

100.00%

Dividend Payout Ratio

29.53%

Pledged Shares

Institutional Holding

ROCE (avg)

1.63%

ROE (avg)

4.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

269

Industry P/E

Price to Book Value

2.59

EV to EBIT

-525.91

EV to EBITDA

289.39

EV to Capital Employed

2.93

EV to Sales

4.62

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

-0.56%

ROE (Latest)

0.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,538.98 MM

DEBT-EQUITY RATIO (HY)

Lowest at -17.47 %

-25What is not working for the Company

NET SALES(HY)

At CNY 843.01 MM has Grown at -14.56%

PRE-TAX PROFIT(Q)

At CNY 32.06 MM has Fallen at -67.03%

NET PROFIT(Q)

At CNY 25.6 MM has Fallen at -71.88%

ROCE(HY)

Lowest at 0.4%

RAW MATERIAL COST(Y)

Grown by 21.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.48%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.01%

Here's what is working for Tansun Technology Co., Ltd.

Cash and Eqv

Highest at CNY 2,538.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -17.47 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Tansun Technology Co., Ltd.

Pre-Tax Profit

At CNY 32.06 MM has Fallen at -67.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.6 MM has Fallen at -71.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 843.01 MM has Grown at -14.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 3.48%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 21.12% (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

Non Operating Income

Highest at CNY 1.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income