Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 28 Sept 2026
300012.SZ· Industrials
Centre Testing International Group
Centre Testing International's strong net margin and financial health contrast with its modest ROIC and valuation concerns.
Buffett fit
Partial fit
Owner
44
Durability
83
Management
65
Price
33
Score updated 29 Oct 2026 · analysis from 28 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned the whole of Centre Testing International, we'd focus on maintaining its strong financial health, evidenced by a current ratio of 2.22 and interest coverage of 72.6.
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The company has been profitable for the past five years, with an EPS CAGR of 3.98%.
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The share count CAGR of 0.05% indicates minimal dilution, which is positive.
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At a of 23.2 and an yield of 3.02%, the valuation appears stretched.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Net margin of 15.4% is top-quintile in the sector.
- 2 of 48.6% exceeds the sector's 43.4% top-quintile cutoff.
- 3Interest coverage ratio of 72.6 indicates strong ability to cover interest payments.
- 4Current ratio of 2.22 suggests robust short-term liquidity.
Concerns
5- 1 of 10.5% is below the sector top-quintile cutoff of 13.6%.
- 2 of 23.2 suggests a high valuation relative to earnings.
- 3 yield of 3.02% is below the preferred 8-10% range.
- 4 of 14.43% falls short of the 15% threshold for high returns on equity.
Price history
$15.58-43.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Centre Testing International Group Co. Ltd. operates in five segments: Trade Protection, Consumer Product Testing, Industrial Testing, Life Sciences, and Pharmaceuticals and Medical Services. The company generates revenue by providing testing, inspection, certification, calibration, and other technical services. With a of 48.6%, the company is top-quintile in its sector. The unit economics are supported by a net margin of 15.4%, indicating strong profitability within the industry.
How this analysis has moved
The call has held across 5 reviews.
Oct 4, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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Questions about Centre Testing International Group
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