Zhejiang Tony Electronic Co., Ltd. (603595) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Tony Electronic Co., Ltd.

Why is Zhejiang Tony Electronic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.40%

The company has been able to generate a Return on Capital Employed (avg) of 1.40% 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 21.59% and Operating profit at -5.19% 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 1.68% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.59% and Operating profit at -5.19% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 65.01 MM has Grown at 111.99%
OPERATING CASH FLOW(Y) Highest at CNY 734.51 MM
DEBTORS TURNOVER RATIO(HY) Highest at 2.72%

With ROE of -0.14%, it has a risky valuation with a 4.28 Price to Book Value

Over the past year, while the stock has generated a return of -11.83%, its profits have risen by 99.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Tony Electronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Zhejiang Tony Electronic Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Tony Electronic Co., Ltd.

-9.42%

-0.30

53.68%

China Shanghai Composite

15.19%

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)

21.59%

EBIT Growth (5y)

-5.19%

EBIT to Interest (avg)

-1.26

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.03

Sales to Capital Employed (avg)

0.54

Tax Ratio

62.01%

Dividend Payout Ratio

30.30%

Pledged Shares

Institutional Holding

ROCE (avg)

1.40%

ROE (avg)

1.68%

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

4.28

EV to EBIT

-136.86

EV to EBITDA

35.32

EV to Capital Employed

2.62

EV to Sales

4.11

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

-1.91%

ROE (Latest)

-0.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

16What is working for the Company

NET PROFIT(HY)

At CNY 65.01 MM has Grown at 111.99%

OPERATING CASH FLOW(Y)

Highest at CNY 734.51 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.72%

PRE-TAX PROFIT(Q)

At CNY 1.29 MM has Grown at 106.18%

-6What is not working for the Company

NET SALES(Q)

At CNY 420.89 MM has Fallen at -14.24%

INTEREST(Q)

At CNY 21.22 MM has Grown at 149.14%

RAW MATERIAL COST(Y)

Grown by 13.49% (YoY

CASH AND EQV(HY)

Lowest at CNY 227.06 MM

Here's what is working for Zhejiang Tony Electronic Co., Ltd.

Net Profit

At CNY 10.89 MM has Grown at 278.08%

over average net sales of the previous four periods of CNY 2.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 734.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 1.29 MM has Grown at 106.18%

over average net sales of the previous four periods of CNY -20.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Zhejiang Tony Electronic Co., Ltd.

Net Sales

At CNY 420.89 MM has Fallen at -14.24%

over average net sales of the previous four periods of CNY 490.76 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 21.22 MM has Grown at 149.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 227.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.49% (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