Tongyu Heavy Industry Co., Ltd. (300185) 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

Tongyu Heavy Industry Co., Ltd.

Why is Tongyu Heavy Industry 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 4.69% and Operating profit at -22.61% 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 3.54% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.69% and Operating profit at -22.61% over the last 5 years

The company declared positive results in Mar'25 after negative results in Dec'24

OPERATING CASH FLOW(Y) Highest at CNY 241.55 MM
RAW MATERIAL COST(Y) Fallen by -56.64% (YoY)
NET PROFIT(9M) Higher at CNY 83.82 MM

With ROE of 0.90%, it has a expensive valuation with a 1.77 Price to Book Value

Over the past year, while the stock has generated a return of 31.72%, its profits have fallen by -2.4%
At the current price, the company has a high dividend yield of 0.2

Consistent Returns over the last 3 years

Along with generating 31.72% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tongyu Heavy Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Tongyu Heavy Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tongyu Heavy Industry Co., Ltd.

37.24%

2.13

45.96%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.69%

EBIT Growth (5y)

-22.61%

EBIT to Interest (avg)

2.41

Debt to EBITDA (avg)

5.91

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

0.44

Tax Ratio

30.75%

Dividend Payout Ratio

47.17%

Pledged Shares

Institutional Holding

ROCE (avg)

4.31%

ROE (avg)

3.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

196

Industry P/E

Price to Book Value

1.77

EV to EBIT

92.83

EV to EBITDA

27.40

EV to Capital Employed

1.44

EV to Sales

2.75

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

1.55%

ROE (Latest)

0.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 241.55 MM

RAW MATERIAL COST(Y)

Fallen by -56.64% (YoY

NET PROFIT(9M)

Higher at CNY 83.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at 71.89 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.75 times

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 199.79

CASH AND EQV(HY)

Lowest at CNY 1,817.65 MM

OPERATING PROFIT(Q)

Lowest at CNY 70.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.92 %

Here's what is working for Tongyu Heavy Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 241.55 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 Profit

At CNY 83.82 MM has Grown at 53.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 71.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 83.82 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -56.64% (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 Tongyu Heavy Industry Co., Ltd.

Interest Coverage Ratio

Lowest at 199.79

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 70.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,817.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents