TCL Zhonghuan Renewable Energy Technology Co., Ltd. (002129) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TCL Zhonghuan Renewable Energy Technology Co., Ltd.

Why is TCL Zhonghuan Renewable Energy Technology Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.73% and Operating profit at -243.75% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.73% and Operating profit at -243.75% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY -5,715.62 MM has Grown at -88.66%
OPERATING CASH FLOW(Y) Lowest at CNY 3,459.94 MM
ROCE(HY) Lowest at -31.14%

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 -6.40%, its profits have fallen by -272.3%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.40% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TCL Zhonghuan Renewable Energy Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

TCL Zhonghuan Renewable Energy Technology Co., Ltd.

-17.28%

0.21

37.42%

China Shanghai Composite

14.77%

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)

7.73%

EBIT Growth (5y)

-243.75%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

2.89

Net Debt to Equity (avg)

1.48

Sales to Capital Employed (avg)

0.55

Tax Ratio

1.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.90%

ROE (avg)

9.42%

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

1.18

EV to EBIT

-6.59

EV to EBITDA

-24.95

EV to Capital Employed

1.07

EV to Sales

2.99

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.17%

ROE (Latest)

-47.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

NET PROFIT(HY)

Higher at CNY -5,715.62 MM

-32What is not working for the Company

NET PROFIT(HY)

At CNY -5,715.62 MM has Grown at -88.66%

OPERATING CASH FLOW(Y)

Lowest at CNY 3,459.94 MM

ROCE(HY)

Lowest at -31.14%

NET SALES(Q)

At CNY 6,049.96 MM has Fallen at -14.07%

RAW MATERIAL COST(Y)

Grown by 421.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 171.35 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.76%

INTEREST(Q)

Highest at CNY 396.09 MM

Here's what is working for TCL Zhonghuan Renewable Energy Technology Co., Ltd.

Net Profit

Higher at CNY -5,715.62 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for TCL Zhonghuan Renewable Energy Technology Co., Ltd.

Net Profit

At CNY -5,715.62 MM has Grown at -88.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 3,459.94 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 6,049.96 MM has Fallen at -14.07%

over average net sales of the previous four periods of CNY 7,040.7 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

Highest at CNY 396.09 MM

in the last five periods and Increased by 6.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 171.35 %

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

Debtors Turnover Ratio

Lowest at 2.76%

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 421.38% (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