Why is Tongyu Communication, Inc. ?
1
Poor Management Efficiency with a low ROCE of 1.57%
- The company has been able to generate a Return on Capital Employed (avg) of 1.57% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -6.82% and Operating profit at -172.86% over the last 5 years
3
With a fall in Net Sales of -5.31%, the company declared Very Negative results in Mar 26
- INTEREST(HY) At CNY 3.05 MM has Grown at 268.86%
- RAW MATERIAL COST(Y) Grown by 24.54% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at -33.88 %
4
With ROE of 0.56%, it has a very expensive valuation with a 4.84 Price to Book Value
- Over the past year, while the stock has generated a return of 137.92%, its profits have fallen by -66.6%
- At the current price, the company has a high dividend yield of 0
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 Telecom - Equipment & Accessories)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Tongyu Communication, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tongyu Communication, Inc.
110.41%
3.44
71.06%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.82%
EBIT Growth (5y)
-172.86%
EBIT to Interest (avg)
-6.09
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.39
Tax Ratio
16.76%
Dividend Payout Ratio
31.25%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.19%
ROE (avg)
2.93%
Valuation Key Factors 
Factor
Value
P/E Ratio
1153
Industry P/E
Price to Book Value
6.43
EV to EBIT
-1033.80
EV to EBITDA
2110.39
EV to Capital Employed
9.22
EV to Sales
15.12
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
-0.89%
ROE (Latest)
0.56%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 1.61 times
NET SALES(Q)
Highest at CNY 302.67 MM
-24What is not working for the Company
INTEREST(9M)
At CNY 3.06 MM has Grown at 208.18%
PRE-TAX PROFIT(Q)
At CNY 2.45 MM has Fallen at -66.04%
ROCE(HY)
Lowest at -0.11%
RAW MATERIAL COST(Y)
Grown by 11.82% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -39.81 %
NET PROFIT(Q)
Lowest at CNY -17.51 MM
Here's what is working for Tongyu Communication, Inc.
Net Sales
Highest at CNY 302.67 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debtors Turnover Ratio
Highest at 1.61 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Tongyu Communication, Inc.
Interest
At CNY 3.06 MM has Grown at 208.18%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY 2.45 MM has Fallen at -66.04%
over average net sales of the previous four periods of CNY 7.21 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -17.51 MM has Fallen at -529.83%
over average net sales of the previous four periods of CNY 4.07 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Profit
Lowest at CNY -17.51 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at -39.81 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 11.82% (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
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