Tatwah Smartech Co., Ltd. (002512) 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

Tatwah Smartech Co., Ltd.

Why is Tatwah Smartech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -3.94% and Operating profit at -0.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.02% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.94% and Operating profit at -0.75% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -31.08%, its profits have fallen by -83%

Below par performance in long term as well as near term

Along with generating -31.08% 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 Tatwah Smartech Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Tatwah Smartech Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tatwah Smartech Co., Ltd.

2.82%

-0.03

64.92%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.94%

EBIT Growth (5y)

-0.75%

EBIT to Interest (avg)

-3.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

2.00

Tax Ratio

13.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.02%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

11.28

EV to EBIT

-41.45

EV to EBITDA

-103.20

EV to Capital Employed

6.72

EV to Sales

1.95

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.22%

ROE (Latest)

-38.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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 57.5 MM

PRE-TAX PROFIT(Q)

At CNY 14.02 MM has Grown at 227.86%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.13 times

RAW MATERIAL COST(Y)

Fallen by -8.86% (YoY

NET SALES(Q)

Highest at CNY 669.94 MM

OPERATING PROFIT(Q)

Highest at CNY 32.62 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.87 %

NET PROFIT(Q)

At CNY -3.15 MM has Grown at 89.03%

-4What is not working for the Company

NET PROFIT(9M)

At CNY -54.07 MM has Grown at -33.14%

CASH AND EQV(HY)

Lowest at CNY 166.08 MM

Here's what is working for Tatwah Smartech Co., Ltd.

Pre-Tax Profit

At CNY 14.02 MM has Grown at 227.86%

over average net sales of the previous four periods of CNY -10.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 57.5 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 669.94 MM has Grown at 32.94%

over average net sales of the previous four periods of CNY 503.93 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 6.13 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at CNY 669.94 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 32.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 4.87 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CNY -3.15 MM has Grown at 89.03%

over average net sales of the previous four periods of CNY -28.7 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -8.86% (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 Tatwah Smartech Co., Ltd.

Cash and Eqv

Lowest at CNY 166.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents