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 12.47% and Operating profit at 16.26% over the last 5 years

NET PROFIT(HY) At CNY 189.2 MM has Grown at -25.14%
ROCE(HY) Lowest at 10.83%
INTEREST COVERAGE RATIO(Q) Lowest at 980.6

With ROE of 11.21%, it has a very attractive valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of -25.17%, its profits have fallen by -14.1%
At the current price, the company has a high dividend yield of 3.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.17% 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 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.

-25.17%

-1.11

28.00%

China Shanghai Composite

17.07%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.47%

EBIT Growth (5y)

16.26%

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

1.92

EV to EBIT

14.95

EV to EBITDA

13.16

EV to Capital Employed

1.90

EV to Sales

5.36

PEG Ratio

Dividend Yield

3.79%

ROCE (Latest)

12.68%

ROE (Latest)

11.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 120.63%

RAW MATERIAL COST(Y)

Fallen by -7.17% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 1.2

-20What is not working for the Company

NET PROFIT(HY)

At CNY 189.2 MM has Grown at -25.14%

ROCE(HY)

Lowest at 10.83%

INTEREST COVERAGE RATIO(Q)

Lowest at 980.6

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.45 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.2 times

NET SALES(Q)

At CNY 343.38 MM has Fallen at -8.77%

OPERATING PROFIT(Q)

Lowest at CNY 121.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 35.33 %

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

Dividend per share

Highest at CNY 1.2

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 120.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.17% (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 Coverage Ratio

Lowest at 980.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 189.2 MM has Grown at -25.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

At CNY 343.38 MM has Fallen at -8.77%

over average net sales of the previous four periods of CNY 376.39 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 121.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 35.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.45 times

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 1.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio