Zhejiang Tiancheng Controls Co., Ltd. (603085) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Tiancheng Controls Co., Ltd.

Why is Zhejiang Tiancheng Controls Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.54%

The company has been able to generate a Return on Capital Employed (avg) of 1.54% signifying low profitability per unit of total capital (equity and debt)

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 13.10% and Operating profit at 14.64% 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 2.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.10% and Operating profit at 14.64% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 84.44 MM
NET SALES(HY) At CNY 1,302.12 MM has Grown at 62.8%
DEBTORS TURNOVER RATIO(HY) Highest at 3.16%

With ROE of -1.20%, it has a risky valuation with a 1.35 Price to Book Value

Over the past year, while the stock has generated a return of 1.36%, its profits have fallen by -151.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Tiancheng Controls Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Zhejiang Tiancheng Controls Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Tiancheng Controls Co., Ltd.

1.36%

0.31

43.67%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.10%

EBIT Growth (5y)

14.64%

EBIT to Interest (avg)

-1.38

Debt to EBITDA (avg)

5.80

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

0.88

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.54%

ROE (avg)

2.37%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.35

EV to EBIT

-529.51

EV to EBITDA

14.81

EV to Capital Employed

1.16

EV to Sales

0.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.22%

ROE (Latest)

-1.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 84.44 MM

NET SALES(HY)

At CNY 1,302.12 MM has Grown at 62.8%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.16%

RAW MATERIAL COST(Y)

Fallen by -2.6% (YoY

CASH AND EQV(HY)

Highest at CNY 752.44 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.92%

PRE-TAX PROFIT(Q)

Highest at CNY 28.44 MM

NET PROFIT(Q)

Highest at CNY 21.05 MM

EPS(Q)

Highest at CNY 0.05

-21What is not working for the Company

NET PROFIT(HY)

At CNY -22.36 MM has Grown at -389.13%

INTEREST(HY)

At CNY 14.43 MM has Grown at 21.19%

DEBT-EQUITY RATIO (HY)

Highest at 114.23 %

OPERATING PROFIT(Q)

Lowest at CNY 16.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.04 %

Here's what is working for Zhejiang Tiancheng Controls Co., Ltd.

Pre-Tax Profit

At CNY 28.44 MM has Grown at 3,173.13%

over average net sales of the previous four periods of CNY -0.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 21.05 MM has Grown at 648.39%

over average net sales of the previous four periods of CNY -3.84 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,302.12 MM has Grown at 62.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 84.44 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)

Debtors Turnover Ratio

Highest at 3.16% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY 28.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 21.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 752.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.92%

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 -2.6% (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 Zhejiang Tiancheng Controls Co., Ltd.

Interest

At CNY 14.43 MM has Grown at 21.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 114.23 % 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

Operating Profit

Lowest at CNY 16.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales