Transfar Zhilian Co., Ltd. (002010) 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

Transfar Zhilian Co., Ltd.

Why is Transfar Zhilian Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.80% and Operating profit at 7.85% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.37% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 1,341.96 MM
CASH AND EQV(HY) Lowest at CNY 7,119.77 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 3.98 times

With ROE of 4.55%, it has a attractive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -7.56%, its profits have risen by 145.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 1.1

Below par performance in long term as well as near term

Along with generating -7.56% returns in the last 1 year, the stock has also underperformed 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 Transfar Zhilian Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Transfar Zhilian Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Transfar Zhilian Co., Ltd.

-7.77%

0.47

31.42%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.80%

EBIT Growth (5y)

7.85%

EBIT to Interest (avg)

1.54

Debt to EBITDA (avg)

8.84

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.81

Tax Ratio

71.08%

Dividend Payout Ratio

70.32%

Pledged Shares

Institutional Holding

ROCE (avg)

2.88%

ROE (avg)

6.37%

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

0.73

EV to EBIT

28.07

EV to EBITDA

19.56

EV to Capital Employed

0.83

EV to Sales

1.06

PEG Ratio

0.11

Dividend Yield

1.06%

ROCE (Latest)

2.96%

ROE (Latest)

4.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

13What is working for the Company

NET PROFIT(HY)

At CNY 319.34 MM has Grown at 124.96%

ROCE(HY)

Highest at 3.65%

RAW MATERIAL COST(Y)

Fallen by -55.33% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 13.39 times

OPERATING PROFIT MARGIN(Q)

Highest at 7.01 %

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,341.96 MM

CASH AND EQV(HY)

Lowest at CNY 7,119.77 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.98 times

NET SALES(Q)

Lowest at CNY 3,954.26 MM

Here's what is working for Transfar Zhilian Co., Ltd.

Net Profit

At CNY 319.34 MM has Grown at 124.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit Margin

Highest at 7.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 13.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -55.33% (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 Transfar Zhilian Co., Ltd.

Net Sales

At CNY 3,954.26 MM has Fallen at -36.6%

over average net sales of the previous four periods of CNY 6,237.15 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,341.96 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 3,954.26 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 7,119.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio