Tianshan Material Co., Ltd. (000877) 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

Tianshan Material Co., Ltd.

Why is Tianshan Material 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 56.52% and Operating profit at 17.08% 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 6.76% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 56.52% and Operating profit at 17.08% over the last 5 years

Flat results in Sep 25

PRE-TAX PROFIT(Q) At CNY -156.99 MM has Fallen at -122.09%
NET PROFIT(Q) At CNY -373.97 MM has Fallen at -181.78%
INTEREST COVERAGE RATIO(Q) Lowest at 47.61

With ROE of 2.50%, it has a very attractive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of -17.63%, its profits have risen by 222.6% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.63% 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 hold?

Overall Portfolio exposure to Tianshan Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Tianshan Material Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tianshan Material Co., Ltd.

-14.83%

-0.41

40.89%

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)

56.52%

EBIT Growth (5y)

17.08%

EBIT to Interest (avg)

6.33

Debt to EBITDA (avg)

7.82

Net Debt to Equity (avg)

1.41

Sales to Capital Employed (avg)

0.44

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.60%

ROE (avg)

6.76%

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

0.52

EV to EBIT

40.89

EV to EBITDA

11.60

EV to Capital Employed

0.82

EV to Sales

2.16

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

2.00%

ROE (Latest)

2.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

10What is working for the Company

NET PROFIT(HY)

Higher at CNY 178.78 MM

ROCE(HY)

Highest at 2.44%

RAW MATERIAL COST(Y)

Fallen by -3.19% (YoY

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -156.99 MM has Fallen at -122.09%

NET PROFIT(Q)

At CNY -373.97 MM has Fallen at -181.78%

INTEREST COVERAGE RATIO(Q)

Lowest at 47.61

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.12 times

NET SALES(Q)

At CNY 18,958.09 MM has Fallen at -8.44%

OPERATING PROFIT(Q)

Lowest at CNY 424.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.24 %

Here's what is working for Tianshan Material Co., Ltd.

Raw Material Cost

Fallen by -3.19% (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 Tianshan Material Co., Ltd.

Pre-Tax Profit

At CNY -156.99 MM has Fallen at -122.09%

over average net sales of the previous four periods of CNY 710.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -373.97 MM has Fallen at -181.78%

over average net sales of the previous four periods of CNY 457.29 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 47.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 18,958.09 MM has Fallen at -8.44%

over average net sales of the previous four periods of CNY 20,706.36 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 424.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 7.49 times

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 2.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio