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

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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 15.76% and Operating profit at 5.94% 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 15.76% and Operating profit at 5.94% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 57.53 MM has Grown at 20.52%
INTEREST COVERAGE RATIO(Q) Lowest at 680.43
OPERATING PROFIT MARGIN(Q) Lowest at 3.53 %

With ROE of 10.13%, it has a fair valuation with a 3.42 Price to Book Value

Over the past year, while the stock has generated a return of 55.76%, its profits have risen by 13.5% ; the PEG ratio of the company is 1.9
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 55.76% 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.

55.76%

2.90

49.63%

China Shanghai Composite

14.77%

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)

15.76%

EBIT Growth (5y)

5.94%

EBIT to Interest (avg)

7.53

Debt to EBITDA (avg)

3.13

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1.82

Tax Ratio

22.10%

Dividend Payout Ratio

33.33%

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

3.42

EV to EBIT

30.10

EV to EBITDA

24.94

EV to Capital Employed

2.37

EV to Sales

1.05

PEG Ratio

1.85

Dividend Yield

0.49%

ROCE (Latest)

7.86%

ROE (Latest)

10.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

NET SALES(HY)

At CNY 11,733.73 MM has Grown at 26.6%

ROCE(HY)

Highest at 10.25%

INVENTORY TURNOVER RATIO(HY)

Highest at 12.07%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.04%

-13What is not working for the Company

INTEREST(HY)

At CNY 57.53 MM has Grown at 20.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 680.43

OPERATING PROFIT MARGIN(Q)

Lowest at 3.53 %

RAW MATERIAL COST(Y)

Grown by 13.77% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 194.36 MM

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

Net Sales

At CNY 11,733.73 MM has Grown at 26.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 12.07% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.04%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At CNY 57.53 MM has Grown at 20.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 680.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 3.53 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 194.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 13.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales