Why is Tong Oil Tools Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.25%
- The company has been able to generate a Return on Capital Employed (avg) of 2.25% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 5.93% and Operating profit at 17.93% over the last 5 years
3
Flat results in Sep 25
- OPERATING CASH FLOW(Y) Lowest at CNY 106.08 MM
- DEBT-EQUITY RATIO (HY) Highest at -0.32 %
4
With ROE of 4.02%, it has a expensive valuation with a 2.25 Price to Book Value
- Over the past year, while the stock has generated a return of 345.45%, its profits have risen by 176.5% ; the PEG ratio of the company is 0.3
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 Oil)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Tong Oil Tools Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tong Oil Tools Co., Ltd.
328.8%
5.09
89.96%
China Shanghai Composite
13.33%
0.90
14.74%
Quality key factors
Factor
Value
Sales Growth (5y)
5.93%
EBIT Growth (5y)
17.93%
EBIT to Interest (avg)
1.01
Debt to EBITDA (avg)
0.71
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.67
Tax Ratio
21.88%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.25%
ROE (avg)
1.95%
Valuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
2.25
EV to EBIT
80.04
EV to EBITDA
25.56
EV to Capital Employed
2.24
EV to Sales
2.72
PEG Ratio
0.32
Dividend Yield
NA
ROCE (Latest)
2.80%
ROE (Latest)
4.02%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
6What is working for the Company
NET PROFIT(HY)
Higher at CNY 55.43 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 9.44 times
RAW MATERIAL COST(Y)
Fallen by -12.25% (YoY
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 106.08 MM
DEBT-EQUITY RATIO
(HY)
Highest at -0.32 %
Here's what is working for Tong Oil Tools Co., Ltd.
Net Profit
Higher at CNY 55.43 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 9.44 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -12.25% (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 Tong Oil Tools Co., Ltd.
Operating Cash Flow
Lowest at CNY 106.08 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -0.32 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






