ScoreWhy is Cathay Biotech, Inc. ?
1
Poor Management Efficiency with a low ROCE of 8.99%
- The company has been able to generate a Return on Capital Employed (avg) of 8.99% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 16.68% and Operating profit at -6.18% over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by -3.37% (YoY)
- CASH AND EQV(HY) Highest at CNY 20,620.69 MM
4
With ROE of 3.01%, it has a attractive valuation with a 1.70 Price to Book Value
- Over the past year, while the stock has generated a return of 0.93%, its profits have risen by 35.4% ; the PEG ratio of the company is 1.6
- At the current price, the company has a high dividend yield of 0.8
5
Underperformed the market in the last 1 year
- The stock has generated a return of 0.93% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cathay Biotech, Inc. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cathay Biotech, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cathay Biotech, Inc.
0.93%
-0.13
30.91%
China Shanghai Composite
14.77%
1.01
14.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.68%
EBIT Growth (5y)
-6.18%
EBIT to Interest (avg)
99.33
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.52
Sales to Capital Employed (avg)
0.18
Tax Ratio
15.23%
Dividend Payout Ratio
47.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.99%
ROE (avg)
4.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
1.70
EV to EBIT
52.27
EV to EBITDA
28.59
EV to Capital Employed
2.49
EV to Sales
6.39
PEG Ratio
1.59
Dividend Yield
0.79%
ROCE (Latest)
4.76%
ROE (Latest)
3.01%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -3.37% (YoY
CASH AND EQV(HY)
Highest at CNY 20,620.69 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -53.1 %
INVENTORY TURNOVER RATIO(HY)
Highest at 1.78%
NET SALES(Q)
Highest at CNY 885.58 MM
PRE-TAX PROFIT(Q)
Highest at CNY 185.31 MM
NET PROFIT(Q)
Highest at CNY 169.83 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Cathay Biotech, Inc.
Net Sales
Highest at CNY 885.58 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 885.58 MM has Grown at 17.58%
over average net sales of the previous four periods of CNY 753.2 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 185.31 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 169.83 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 20,620.69 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -53.1 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 1.78%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.37% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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