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

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 4.38% and Operating profit at 9.98% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 581.91 MM
NET SALES(9M) At CNY 1,021.98 MM has Grown at -11.67%
NET PROFIT(9M) At CNY 295.02 MM has Grown at -20.52%

With ROE of 9.95%, it has a expensive valuation with a 1.27 Price to Book Value

Over the past year, while the stock has generated a return of -19.58%, its profits have fallen by -21.7%
At the current price, the company has a high dividend yield of 10.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.58% 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 Pharmaceuticals & Biotechnology)

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

Is Beijing Strong Biotechnologies, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Beijing Strong Biotechnologies, Inc.

-21.98%

-1.30

27.07%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.38%

EBIT Growth (5y)

9.98%

EBIT to Interest (avg)

11.97

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.31

Tax Ratio

18.64%

Dividend Payout Ratio

370.48%

Pledged Shares

Institutional Holding

ROCE (avg)

12.93%

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

1.63

EV to EBIT

14.85

EV to EBITDA

13.27

EV to Capital Employed

1.57

EV to Sales

4.93

PEG Ratio

Dividend Yield

8.03%

ROCE (Latest)

10.57%

ROE (Latest)

9.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.8% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 123.98 MM

NET PROFIT(Q)

Highest at CNY 105.61 MM

EPS(Q)

Highest at CNY 0.18

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 581.91 MM

NET SALES(9M)

At CNY 1,021.98 MM has Grown at -11.67%

NET PROFIT(9M)

At CNY 295.02 MM has Grown at -20.52%

INTEREST(HY)

At CNY 25.69 MM has Grown at 6.56%

ROCE(HY)

Lowest at 5.23%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.27 times

DEBT-EQUITY RATIO (HY)

Highest at 10.71 %

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

Pre-Tax Profit

Highest at CNY 123.98 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 105.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -6.8% (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.

Interest

At CNY 25.69 MM has Grown at 6.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.27 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At CNY 1,021.98 MM has Grown at -11.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 581.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 10.71 %

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

Non Operating Income

Highest at CNY 0.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income