Zhejiang Tongli Transmission Technology Co., Ltd. () 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

Zhejiang Tongli Transmission Technology Co., Ltd.

Why is Zhejiang Tongli Transmission Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.72% and Operating profit at -35.51% over the last 5 years

The company has declared negative results for the last 9 consecutive quarters

INTEREST(HY) At CNY 1.11 MM has Grown at 159.58%
OPERATING CASH FLOW(Y) Lowest at CNY 12.37 MM
ROCE(HY) Lowest at 3.75%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.06% 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 Industrial Manufacturing)

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

Is Zhejiang Tongli Transmission Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Tongli Transmission Technology Co., Ltd.

-29.06%

-0.92

42.82%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.72%

EBIT Growth (5y)

-35.51%

EBIT to Interest (avg)

61.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.37

Tax Ratio

11.47%

Dividend Payout Ratio

41.38%

Pledged Shares

Institutional Holding

ROCE (avg)

11.62%

ROE (avg)

6.82%

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

0.90

EV to EBIT

41.29

EV to EBITDA

20.06

EV to Capital Employed

0.90

EV to Sales

1.95

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

2.17%

ROE (Latest)

3.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-28What is not working for the Company

INTEREST(HY)

At CNY 1.11 MM has Grown at 159.58%

OPERATING CASH FLOW(Y)

Lowest at CNY 12.37 MM

ROCE(HY)

Lowest at 3.75%

DEBT-EQUITY RATIO (HY)

Highest at -6.05 %

RAW MATERIAL COST(Y)

Grown by 9.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.15 times

OPERATING PROFIT(Q)

Lowest at CNY 0.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.34 %

PRE-TAX PROFIT(Q)

Lowest at CNY 2.5 MM

NET PROFIT(Q)

Lowest at CNY 6.41 MM

EPS(Q)

Lowest at CNY 0.04

Here's what is not working for Zhejiang Tongli Transmission Technology Co., Ltd.

Interest

At CNY 1.11 MM has Grown at 159.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 2.5 MM has Fallen at -79.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -6.05 % 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 Cash Flow

Lowest at CNY 12.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 0.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 2.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 6.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -38.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.44% (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

Non Operating Income

Highest at CNY 1.01 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income