TJK Machinery (Tianjin) Co., Ltd. (300823) 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

TJK Machinery (Tianjin) Co., Ltd.

Why is TJK Machinery (Tianjin) 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 -2.19% and Operating profit at -17.17% 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 6.65% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.19% and Operating profit at -17.17% over the last 5 years

The company declared very negative results in Mar'25 after flat results in Dec'24

NET PROFIT(9M) At CNY 18.45 MM has Grown at -40.72%
NET SALES(9M) At CNY 280.95 MM has Grown at -12.74%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.4 times

With ROE of 4.10%, it has a fair valuation with a 2.14 Price to Book Value

Over the past year, while the stock has generated a return of -5.45%, its profits have fallen by -38.8%
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 -5.45% 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 TJK Machinery (Tianjin) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is TJK Machinery (Tianjin) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TJK Machinery (Tianjin) Co., Ltd.

2.88%

0.75

38.80%

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)

-2.19%

EBIT Growth (5y)

-17.17%

EBIT to Interest (avg)

60.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.44

Tax Ratio

8.62%

Dividend Payout Ratio

95.29%

Pledged Shares

Institutional Holding

ROCE (avg)

8.89%

ROE (avg)

6.65%

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

2.14

EV to EBIT

58.21

EV to EBITDA

25.77

EV to Capital Employed

2.40

EV to Sales

4.42

PEG Ratio

Dividend Yield

0.63%

ROCE (Latest)

4.12%

ROE (Latest)

4.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.09% (YoY

NET PROFIT(Q)

Highest at CNY 13.73 MM

EPS(Q)

Highest at CNY 0.1

-9What is not working for the Company

NET PROFIT(9M)

At CNY 18.45 MM has Grown at -40.72%

NET SALES(9M)

At CNY 280.95 MM has Grown at -12.74%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.4 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.01 times

Here's what is working for TJK Machinery (Tianjin) Co., Ltd.

Net Profit

Highest at CNY 13.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -20.09% (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 TJK Machinery (Tianjin) Co., Ltd.

Debtors Turnover Ratio

Lowest at 1.4 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

At CNY 280.95 MM has Grown at -12.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 1.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio