Beijing Strong Biotechnologies, Inc. (300406) 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

Beijing Strong Biotechnologies, Inc.

Why is Beijing Strong Biotechnologies, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.88% and Operating profit at 15.55% over the last 5 years

NET SALES(Q) At CNY 315.12 MM has Fallen at -23.31%
ROCE(HY) Lowest at 12.28%
INTEREST COVERAGE RATIO(Q) Lowest at 896.11

With ROE of 11.21%, it has a very attractive valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of -6.61%, its profits have fallen by -14.1%
At the current price, the company has a high dividend yield of 5.2

Below par performance in long term as well as near term

Along with generating -6.61% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Beijing Strong Biotechnologies, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Beijing Strong Biotechnologies, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Beijing Strong Biotechnologies, Inc.

-7.55%

-0.62

32.41%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.88%

EBIT Growth (5y)

15.55%

EBIT to Interest (avg)

15.94

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.33

Tax Ratio

14.19%

Dividend Payout Ratio

44.18%

Pledged Shares

Institutional Holding

ROCE (avg)

12.66%

ROE (avg)

11.92%

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

1.39

EV to EBIT

10.86

EV to EBITDA

9.55

EV to Capital Employed

1.38

EV to Sales

3.89

PEG Ratio

Dividend Yield

5.25%

ROCE (Latest)

12.68%

ROE (Latest)

11.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 687.89 MM

RAW MATERIAL COST(Y)

Fallen by -10.13% (YoY

CASH AND EQV(HY)

Highest at CNY 2,104.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at 2.92 %

-23What is not working for the Company

NET SALES(Q)

At CNY 315.12 MM has Fallen at -23.31%

ROCE(HY)

Lowest at 12.28%

INTEREST COVERAGE RATIO(Q)

Lowest at 896.11

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.58%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.36%

OPERATING PROFIT(Q)

Lowest at CNY 107.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 33.96 %

PRE-TAX PROFIT(Q)

Lowest at CNY 98.02 MM

NET PROFIT(Q)

Lowest at CNY 83.26 MM

EPS(Q)

Lowest at CNY 0.14

Here's what is working for Beijing Strong Biotechnologies, Inc.

Operating Cash Flow

Highest at CNY 687.89 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)

Cash and Eqv

Highest at CNY 2,104.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 2.92 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -10.13% (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 Beijing Strong Biotechnologies, Inc.

Net Sales

At CNY 315.12 MM has Fallen at -23.31%

over average net sales of the previous four periods of CNY 410.87 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 896.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 315.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 107.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 33.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 98.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 98.02 MM has Fallen at -36.83%

over average net sales of the previous four periods of CNY 155.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 83.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 83.26 MM has Fallen at -37.48%

over average net sales of the previous four periods of CNY 133.16 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 1.58%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.36%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio