Zhongtongguomai Communication Co., Ltd. (603559) 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

Zhongtongguomai Communication Co., Ltd.

Why is Zhongtongguomai Communication Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.13%

The company has been able to generate a Return on Capital Employed (avg) of 0.13% 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 -10.15% and Operating profit at -337.46% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of -10.15% and Operating profit at -337.46% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -667.6 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 -16.61%, its profits have fallen by -11.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhongtongguomai Communication Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Zhongtongguomai Communication Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhongtongguomai Communication Co., Ltd.

-10.42%

2.45

36.81%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.75%

EBIT Growth (5y)

-281.50%

EBIT to Interest (avg)

-9.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

1.08

Tax Ratio

2.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

ROE (avg)

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

0.92

EV to EBIT

-3.25

EV to EBITDA

-3.37

EV to Capital Employed

0.87

EV to Sales

1.01

PEG Ratio

Dividend Yield

ROCE (Latest)

-26.86%

ROE (Latest)

-19.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly 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

21What is working for the Company

ROCE(HY)

Highest at -16.6%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.32 times

NET SALES(Q)

At CNY 104.72 MM has Grown at 32.99%

OPERATING PROFIT(Q)

Highest at CNY 6.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.08 %

PRE-TAX PROFIT(Q)

Highest at CNY 6.69 MM

NET PROFIT(Q)

Highest at CNY 6.74 MM

EPS(Q)

Highest at CNY 0.02

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 34.94% (YoY

Here's what is working for Zhongtongguomai Communication Co., Ltd.

Pre-Tax Profit

At CNY 6.69 MM has Grown at 187.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.74 MM has Grown at 183.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.32 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 104.72 MM has Grown at 32.99%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 6.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 6.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 6.69 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 6.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Zhongtongguomai Communication Co., Ltd.

Raw Material Cost

Grown by 34.94% (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