Tongqinglou Catering Co., Ltd. (605108) 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

Tongqinglou Catering Co., Ltd.

Why is Tongqinglou Catering Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.82% and Operating profit at -9.15% over the last 5 years

With a fall in Net Sales of -10.94%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
The company has declared negative results in Jun 24 after 5 consecutive negative quarters
INTEREST(HY) At CNY 40.15 MM has Grown at 29.22%
ROCE(HY) Lowest at 2.11%
DEBT-EQUITY RATIO (HY) Highest at 109.02 %

With ROE of 3.95%, it has a expensive valuation with a 2.21 Price to Book Value

Over the past year, while the stock has generated a return of -14.57%, its profits have fallen by -62%
At the current price, the company has a high dividend yield of 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.57% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tongqinglou Catering Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tongqinglou Catering Co., Ltd.

-27.88%

-0.64

36.57%

China Shanghai Composite

13.33%

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)

15.82%

EBIT Growth (5y)

-9.15%

EBIT to Interest (avg)

8.92

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.79

Tax Ratio

32.30%

Dividend Payout Ratio

31.06%

Pledged Shares

Institutional Holding

ROCE (avg)

10.38%

ROE (avg)

7.94%

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

2.21

EV to EBIT

30.60

EV to EBITDA

10.62

EV to Capital Employed

1.77

EV to Sales

2.49

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

5.79%

ROE (Latest)

3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-36What is not working for the Company

INTEREST(HY)

At CNY 40.15 MM has Grown at 29.22%

ROCE(HY)

Lowest at 2.11%

DEBT-EQUITY RATIO (HY)

Highest at 109.02 %

RAW MATERIAL COST(Y)

Grown by 42.28% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.67 times

NET SALES(Q)

Lowest at CNY 565.59 MM

OPERATING PROFIT(Q)

Lowest at CNY -19.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.44 %

PRE-TAX PROFIT(Q)

Lowest at CNY -41.28 MM

NET PROFIT(Q)

Lowest at CNY -41.8 MM

EPS(Q)

Lowest at CNY -0.16

Here's what is not working for Tongqinglou Catering Co., Ltd.

Interest

At CNY 40.15 MM has Grown at 29.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -41.28 MM has Fallen at -220.47%

over average net sales of the previous four periods of CNY 34.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -41.8 MM has Fallen at -283.63%

over average net sales of the previous four periods of CNY 22.76 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 565.59 MM has Fallen at -12.09%

over average net sales of the previous four periods of CNY 643.37 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 109.02 % and Grown

In each half year 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

Net Sales

Lowest at CNY 565.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -19.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -41.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -41.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 17.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 42.28% (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