TongFu Microelectronics Co., Ltd. (002156) 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

TongFu Microelectronics Co., Ltd.

Why is TongFu Microelectronics Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 19.82% and Operating profit at 21.92% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.04% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 6,498.37 MM
ROCE(HY) Highest at 9.5%
RAW MATERIAL COST(Y) Fallen by -14.18% (YoY)

With ROE of 8.34%, it has a expensive valuation with a 6.02 Price to Book Value

Over the past year, while the stock has generated a return of 202.03%, its profits have risen by 63.6% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 0.2

Market Beating performance in long term as well as near term

Along with generating 202.03% returns in the last 1 year, the stock has outperformed 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 TongFu Microelectronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is TongFu Microelectronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TongFu Microelectronics Co., Ltd.

179.95%

3.41

56.66%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.82%

EBIT Growth (5y)

21.92%

EBIT to Interest (avg)

2.43

Debt to EBITDA (avg)

2.24

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

0.81

Tax Ratio

29.09%

Dividend Payout Ratio

10.09%

Pledged Shares

Institutional Holding

ROCE (avg)

4.62%

ROE (avg)

5.04%

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

6.02

EV to EBIT

63.49

EV to EBITDA

24.74

EV to Capital Employed

3.55

EV to Sales

3.73

PEG Ratio

1.13

Dividend Yield

0.20%

ROCE (Latest)

5.60%

ROE (Latest)

8.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,498.37 MM

ROCE(HY)

Highest at 9.5%

RAW MATERIAL COST(Y)

Fallen by -14.18% (YoY

CASH AND EQV(HY)

Highest at CNY 10,330.61 MM

NET SALES(Q)

At CNY 7,481.67 MM has Grown at 22.8%

NET PROFIT(Q)

At CNY 196.48 MM has Grown at 93.79%

-8What is not working for the Company

INTEREST(HY)

At CNY 269.35 MM has Grown at 8.95%

INTEREST COVERAGE RATIO(Q)

Lowest at 301.06

DEBT-EQUITY RATIO (HY)

Highest at 96.5 %

OPERATING PROFIT(Q)

Lowest at CNY 384.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.14 %

Here's what is working for TongFu Microelectronics Co., Ltd.

Operating Cash Flow

Highest at CNY 6,498.37 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

At CNY 7,481.67 MM has Grown at 22.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 196.48 MM has Grown at 93.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 10,330.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.18% (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 TongFu Microelectronics Co., Ltd.

Interest Coverage Ratio

Lowest at 301.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 269.35 MM has Grown at 8.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 384.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 96.5 %

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