ScoreWhy is Tongguan Gold Group Ltd. ?
1
Poor Management Efficiency with a low ROE of 4.25%
- The company has been able to generate a Return on Equity (avg) of 4.25% signifying low profitability per unit of shareholders funds
2
Strong Long Term Fundamental Strength with a 83.54% CAGR growth in Operating Profits
3
Healthy long term growth as Net Sales has grown by an annual rate of 58.54% and Operating profit at 83.54%
4
With a growth in Net Profit of 187.5%, the company declared Very Positive results in Jun 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at HKD 1,014.59 MM
- ROCE(HY) Highest at 16.96%
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
5
With ROE of 8.42%, it has a Expensive valuation with a 3.28 Price to Book Value
- Over the past year, while the stock has generated a return of 258.14%, its profits have risen by 264.2% ; the PEG ratio of the company is 0.2
6
Consistent Returns over the last 3 years
- Along with generating 258.14% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tongguan Gold Group Ltd. should be less than 10%
- Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tongguan Gold Group Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tongguan Gold Group Ltd.
258.14%
6.39
77.09%
Hang Seng Hong Kong
8.25%
0.41
19.93%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
58.54%
EBIT Growth (5y)
83.54%
EBIT to Interest (avg)
10.52
Debt to EBITDA (avg)
1.09
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.46
Tax Ratio
31.55%
Dividend Payout Ratio
23.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.65%
ROE (avg)
4.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
Price to Book Value
3.28
EV to EBIT
25.03
EV to EBITDA
18.86
EV to Capital Employed
2.99
EV to Sales
5.30
PEG Ratio
0.15
Dividend Yield
6.00%
ROCE (Latest)
11.96%
ROE (Latest)
8.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 1,014.59 MM
ROCE(HY)
Highest at 16.96%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
OPERATING PROFIT(Q)
Highest at HKD 511.88 MM
OPERATING PROFIT MARGIN(Q)
Highest at 49.76 %
PRE-TAX PROFIT(Q)
Highest at HKD 431.38 MM
NET PROFIT(Q)
Highest at HKD 342.64 MM
RAW MATERIAL COST(Y)
Fallen by -698.26% (YoY
CASH AND EQV(HY)
Highest at HKD 780.35 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -6.69 %
NET SALES(Q)
Highest at HKD 1,028.74 MM
EPS(Q)
Highest at HKD 0.08
-6What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.57 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 15.66 times
INTEREST(Q)
Highest at HKD 19.84 MM
Here's what is working for Tongguan Gold Group Ltd.
Pre-Tax Profit
At HKD 431.38 MM has Grown at 224.81%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (HKD MM)
Net Profit
At HKD 342.64 MM has Grown at 272.62%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (HKD MM)
Operating Cash Flow
Highest at HKD 1,014.59 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Operating Profit
Highest at HKD 511.88 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (HKD MM)
Operating Profit Margin
Highest at 49.76 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at HKD 431.38 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (HKD MM)
Net Profit
Highest at HKD 342.64 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (HKD MM)
Net Sales
Highest at HKD 1,028.74 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (HKD MM)
EPS
Highest at HKD 0.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (HKD)
Cash and Eqv
Highest at HKD 780.35 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -6.69 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -698.26% (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
Depreciation
Highest at HKD 63.04 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (HKD MM)
Depreciation
At HKD 63.04 MM has Grown at 8.28%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (HKD MM)
Here's what is not working for Tongguan Gold Group Ltd.
Inventory Turnover Ratio
Lowest at 6.57 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest
Highest at HKD 19.84 MM
in the last five periods and Increased by 29.77% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Debtors Turnover Ratio
Lowest at 15.66 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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