Tsann Kuen (China) Enterprise Co. Ltd. (200512) 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

Tsann Kuen (China) Enterprise Co. Ltd.

Why is Tsann Kuen (China) Enterprise Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -7.01% and Operating profit at -32.22% over the last 5 years

With a fall in PBT of -329.36%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(HY) At HKD 740.03 MM has Grown at -28.69%
INTEREST COVERAGE RATIO(Q) Lowest at 166.3
OPERATING CASH FLOW(Y) Lowest at HKD 59.32 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -17.20%, its profits have fallen by -38.1%
At the current price, the company has a high dividend yield of 5.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.20% 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 Electronics & Appliances)

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

Is Tsann Kuen (China) Enterprise Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tsann Kuen (China) Enterprise Co. Ltd.

-100.0%

-0.60

20.30%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.01%

EBIT Growth (5y)

-32.22%

EBIT to Interest (avg)

48.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.41

Tax Ratio

13.13%

Dividend Payout Ratio

45.96%

Pledged Shares

Institutional Holding

ROCE (avg)

195.03%

ROE (avg)

13.69%

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

0.51

EV to EBIT

-9.84

EV to EBITDA

-4.64

EV to Capital Employed

-4.88

EV to Sales

-0.29

PEG Ratio

Dividend Yield

5.61%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

6.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-34What is not working for the Company

NET SALES(HY)

At HKD 740.03 MM has Grown at -28.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 166.3

OPERATING CASH FLOW(Y)

Lowest at HKD 59.32 MM

ROCE(HY)

Lowest at 3.53%

OPERATING PROFIT(Q)

Lowest at HKD 9.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.19 %

PRE-TAX PROFIT(Q)

At HKD 12.5 MM has Fallen at -47.02%

NET PROFIT(Q)

At HKD 7.99 MM has Fallen at -50.02%

RAW MATERIAL COST(Y)

Grown by 8.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.83 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.91 times

Here's what is not working for Tsann Kuen (China) Enterprise Co. Ltd.

Net Sales

At HKD 740.03 MM has Grown at -28.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Interest Coverage Ratio

Lowest at 166.3 and Fallen

In each period 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 HKD 9.53 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 2.19 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At HKD 12.5 MM has Fallen at -47.02%

over average net sales of the previous four periods of HKD 23.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 7.99 MM has Fallen at -50.02%

over average net sales of the previous four periods of HKD 15.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 59.32 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Inventory Turnover Ratio

Lowest at 6.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.91 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 8.46% (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