Tongkun Group Co., Ltd. (601233) 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

Tongkun Group Co., Ltd.

Why is Tongkun Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.55%

The company has been able to generate a Return on Capital Employed (avg) of 2.55% signifying low profitability per unit of total capital (equity and debt)

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 14.95% and Operating profit at -3.26% 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 8.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.95% and Operating profit at -3.26% over the last 5 years

Flat results in Sep 25

NET SALES(HY) At CNY 47,977.34 MM has Grown at -12.67%
DEBTORS TURNOVER RATIO(HY) Lowest at 47.13 times
OPERATING PROFIT(Q) Lowest at CNY -11.06 MM

With ROE of 3.28%, it has a fair valuation with a 0.95 Price to Book Value

Over the past year, while the stock has generated a return of 86.34%, its profits have fallen by -28.5%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Tongkun Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Tongkun Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tongkun Group Co., Ltd.

118.14%

1.66

37.95%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.70%

EBIT Growth (5y)

0.98%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

12.05

Net Debt to Equity (avg)

1.23

Sales to Capital Employed (avg)

0.97

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

14.02%

Pledged Shares

Institutional Holding

ROCE (avg)

2.55%

ROE (avg)

8.38%

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

1.19

EV to EBIT

47.07

EV to EBITDA

15.92

EV to Capital Employed

1.09

EV to Sales

0.98

PEG Ratio

0.09

Dividend Yield

0.48%

ROCE (Latest)

2.31%

ROE (Latest)

8.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

24What is working for the Company

ROCE(HY)

Highest at 8.58%

RAW MATERIAL COST(Y)

Fallen by -20.57% (YoY

CASH AND EQV(HY)

Highest at CNY 31,576.55 MM

PRE-TAX PROFIT(Q)

Highest at CNY 1,243.13 MM

NET PROFIT(Q)

Highest at CNY 1,887.55 MM

EPS(Q)

Highest at CNY 0.8

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.22 times

OPERATING PROFIT(Q)

Lowest at CNY 1,268.16 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.43 %

Here's what is working for Tongkun Group Co., Ltd.

Pre-Tax Profit

At CNY 1,243.13 MM has Grown at 364.97%

over average net sales of the previous four periods of CNY 267.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1,887.55 MM has Grown at 272.6%

over average net sales of the previous four periods of CNY 506.59 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 1,243.13 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 1,887.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 31,576.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.57% (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 Tongkun Group Co., Ltd.

Operating Profit

Lowest at CNY 1,268.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio