Tecnon Electronics Co. Ltd. (300650) 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

Tecnon Electronics Co. Ltd.

Why is Tecnon Electronics Co. Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at -11.82% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.63% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at -11.82% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 9.23 MM has Grown at -59.27%
OPERATING CASH FLOW(Y) Lowest at CNY -185.48 MM
ROCE(HY) Lowest at 3.06%

With ROE of 2.87%, it has a very expensive valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of -11.93%, its profits have fallen by -22.8%
At the current price, the company has a high dividend yield of 0.6

Below par performance in long term as well as near term

Along with generating -11.93% 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 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 Electronics & Appliances)

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

Is Tecnon Electronics Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tecnon Electronics Co. Ltd.

-28.84%

0.63

53.14%

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)

6.32%

EBIT Growth (5y)

-11.82%

EBIT to Interest (avg)

3.52

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.53

Tax Ratio

13.06%

Dividend Payout Ratio

21.87%

Pledged Shares

Institutional Holding

ROCE (avg)

5.86%

ROE (avg)

6.63%

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

2.59

EV to EBIT

83.52

EV to EBITDA

55.60

EV to Capital Employed

2.26

EV to Sales

1.33

PEG Ratio

Dividend Yield

0.23%

ROCE (Latest)

2.70%

ROE (Latest)

2.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

5What is working for the Company

NET SALES(HY)

At CNY 1,606.84 MM has Grown at 22.97%

DIVIDEND PAYOUT RATIO(Y)

Highest at 75.68%

RAW MATERIAL COST(Y)

Fallen by -21.03% (YoY

-29What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -111.68 MM

NET SALES(Q)

At CNY 633.37 MM has Fallen at -17.75%

NET PROFIT(Q)

At CNY 4.47 MM has Fallen at -56.53%

ROCE(HY)

Lowest at 2.52%

DEBT-EQUITY RATIO (HY)

Highest at 30.27 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.03 times

INTEREST(Q)

Highest at CNY 6.3 MM

Here's what is working for Tecnon Electronics Co. Ltd.

Dividend Payout Ratio

Highest at 75.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -21.03% (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 Tecnon Electronics Co. Ltd.

Net Sales

At CNY 633.37 MM has Fallen at -17.75%

over average net sales of the previous four periods of CNY 770.09 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 4.47 MM has Fallen at -56.53%

over average net sales of the previous four periods of CNY 10.29 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -111.68 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)

Interest

At CNY 6.3 MM has Grown at 10.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 6.3 MM

in the last five periods and Increased by 10.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 30.27 %

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 5.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio