Tongling Jingda Special Magnet Wire Co., Ltd. (600577) 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

Tongling Jingda Special Magnet Wire Co., Ltd.

Why is Tongling Jingda Special Magnet Wire Co., Ltd. ?

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 15.11% and Operating profit at 5.53% 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 10.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.11% and Operating profit at 5.53% over the last 5 years

Flat results in Sep 25

OPERATING PROFIT(Q) Lowest at CNY 217.34 MM
OPERATING PROFIT MARGIN(Q) Lowest at 3.67 %

With ROE of 10.13%, it has a fair valuation with a 3.61 Price to Book Value

Over the past year, while the stock has generated a return of 103.80%, its profits have risen by 13.5% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 103.80% 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 Tongling Jingda Special Magnet Wire Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Tongling Jingda Special Magnet Wire Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tongling Jingda Special Magnet Wire Co., Ltd.

45.8%

4.83

49.84%

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)

13.65%

EBIT Growth (5y)

3.72%

EBIT to Interest (avg)

7.53

Debt to EBITDA (avg)

3.13

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1.87

Tax Ratio

22.10%

Dividend Payout Ratio

31.91%

Pledged Shares

Institutional Holding

ROCE (avg)

10.03%

ROE (avg)

10.85%

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

3.94

EV to EBIT

33.43

EV to EBITDA

28.84

EV to Capital Employed

2.59

EV to Sales

1.15

PEG Ratio

Dividend Yield

0.73%

ROCE (Latest)

7.74%

ROE (Latest)

10.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,458.7 MM

CASH AND EQV(HY)

Highest at CNY 4,556.62 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 12.52 times

NET SALES(Q)

Highest at CNY 7,036.3 MM

-7What is not working for the Company

INTEREST(Q)

At CNY 22.43 MM has Grown at 57.94%

DEBT-EQUITY RATIO (HY)

Highest at 85.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.6 times

OPERATING PROFIT(Q)

Lowest at CNY 224.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.19 %

Here's what is working for Tongling Jingda Special Magnet Wire Co., Ltd.

Operating Cash Flow

Highest at CNY 1,458.7 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 7,036.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 4,556.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 12.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Tongling Jingda Special Magnet Wire Co., Ltd.

Interest

At CNY 22.43 MM has Grown at 57.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 224.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 85.19 %

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

Debtors Turnover Ratio

Lowest at 3.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio