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

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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 15.49% and Operating profit at -18.79% 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 15.49% and Operating profit at -18.79% over the last 5 years

Flat results in Mar 25

NET PROFIT(9M) At CNY 733.82 MM has Grown at -40.24%
INTEREST COVERAGE RATIO(Q) Lowest at 194.12
OPERATING PROFIT(Q) Lowest at CNY 591.47 MM

With ROE of 3.28%, it has a fair valuation with a 0.83 Price to Book Value

Over the past year, while the stock has generated a return of 25.52%, its profits have fallen by -28.5%
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tongkun Group Co., Ltd.

25.8%

0.08

31.21%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.49%

EBIT Growth (5y)

-18.79%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

12.05

Net Debt to Equity (avg)

1.23

Sales to Capital Employed (avg)

0.93

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

19.76%

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

0.83

EV to EBIT

96.83

EV to EBITDA

13.26

EV to Capital Employed

0.93

EV to Sales

0.82

PEG Ratio

Dividend Yield

0.73%

ROCE (Latest)

0.96%

ROE (Latest)

3.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 9,709.25 MM

RAW MATERIAL COST(Y)

Fallen by -21.29% (YoY

CASH AND EQV(HY)

Highest at CNY 28,341.59 MM

PRE-TAX PROFIT(Q)

Highest at CNY 426.69 MM

NET PROFIT(Q)

Highest at CNY 610.35 MM

EPS(Q)

Highest at CNY 0.26

-15What is not working for the Company

NET PROFIT(9M)

At CNY 733.82 MM has Grown at -40.24%

INTEREST COVERAGE RATIO(Q)

Lowest at 194.12

OPERATING PROFIT(Q)

Lowest at CNY 591.47 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.43%

NET SALES(Q)

Lowest at CNY 19,349.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.06 %

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

Pre-Tax Profit

At CNY 426.69 MM has Grown at 644.74%

over average net sales of the previous four periods of CNY 57.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 9,709.25 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 426.69 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 610.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 610.35 MM has Grown at 105.81%

over average net sales of the previous four periods of CNY 296.56 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 28,341.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.29% (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.

Net Sales

At CNY 19,349.74 MM has Fallen at -23.38%

over average net sales of the previous four periods of CNY 25,253.23 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 194.12 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 591.47 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Net Sales

Lowest at CNY 19,349.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at 3.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.43%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio