Tongda Smart Tech (Xiamen) Co., Ltd. () 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

Tongda Smart Tech (Xiamen) Co., Ltd.

Why is Tongda Smart Tech (Xiamen) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.04% and Operating profit at 7.19% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 0.89 MM has Grown at 51.56%
OPERATING PROFIT MARGIN(Q) Lowest at 11.27 %
DEBT-EQUITY RATIO (HY) Highest at -26.52 %

With ROE of 7.41%, it has a attractive valuation with a 0.48 Price to Book Value

Over the past year, while the stock has generated a return of -4.68%, its profits have risen by 4.1% ; the PEG ratio of the company is 1.6

Below par performance in long term as well as near term

Along with generating -4.68% 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 Tongda Smart Tech (Xiamen) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Tongda Smart Tech (Xiamen) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tongda Smart Tech (Xiamen) Co., Ltd.

-4.68%

0.27

38.62%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.04%

EBIT Growth (5y)

7.19%

EBIT to Interest (avg)

81.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.67

Tax Ratio

10.18%

Dividend Payout Ratio

85.58%

Pledged Shares

Institutional Holding

ROCE (avg)

10.46%

ROE (avg)

6.92%

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

0.48

EV to EBIT

2.90

EV to EBITDA

1.99

EV to Capital Employed

0.28

EV to Sales

0.26

PEG Ratio

1.58

Dividend Yield

ROCE (Latest)

9.61%

ROE (Latest)

7.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 186.34 MM

RAW MATERIAL COST(Y)

Fallen by -14.82% (YoY

NET SALES(Q)

Highest at CNY 309.28 MM

PRE-TAX PROFIT(Q)

Highest at CNY 35.4 MM

NET PROFIT(Q)

Highest at CNY 32.67 MM

EPS(Q)

Highest at CNY 0.27

-12What is not working for the Company

INTEREST(HY)

At CNY 0.89 MM has Grown at 51.56%

OPERATING PROFIT MARGIN(Q)

Lowest at 11.27 %

DEBT-EQUITY RATIO (HY)

Highest at -26.52 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.14 times

Here's what is working for Tongda Smart Tech (Xiamen) Co., Ltd.

Operating Cash Flow

Highest at CNY 186.34 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 309.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 35.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 32.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -14.82% (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 Tongda Smart Tech (Xiamen) Co., Ltd.

Interest

At CNY 0.89 MM has Grown at 51.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 11.27 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -26.52 %

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

Inventory Turnover Ratio

Lowest at 5.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio