Chengda Pharmaceuticals Co., Ltd. () 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

Chengda Pharmaceuticals Co., Ltd.

Why is Chengda Pharmaceuticals Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.29%

The company has been able to generate a Return on Capital Employed (avg) of 7.29% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.38% and Operating profit at -160.14% over the last 5 years

With a growth in Net Sales of 68.06%, the company declared Very Positive results in Mar 26

PRE-TAX PROFIT(Q) At CNY 6.4 MM has Grown at 417.99%
NET PROFIT(Q) At CNY 4.78 MM has Grown at 354.71%
RAW MATERIAL COST(Y) Fallen by -1.55% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 74.15%, its profits have risen by 83.5%

Market Beating Performance

The stock has generated a return of 74.15% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.78%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chengda Pharmaceuticals Co., Ltd. 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 Chengda Pharmaceuticals Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chengda Pharmaceuticals Co., Ltd.

74.15%

1.29

74.05%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.38%

EBIT Growth (5y)

-160.14%

EBIT to Interest (avg)

32.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.17

Tax Ratio

6.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.29%

ROE (avg)

3.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.38

EV to EBIT

-140.84

EV to EBITDA

36.73

EV to Capital Employed

1.67

EV to Sales

4.39

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

-1.18%

ROE (Latest)

-0.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

25What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 6.4 MM has Grown at 417.99%

NET PROFIT(Q)

At CNY 4.78 MM has Grown at 354.71%

RAW MATERIAL COST(Y)

Fallen by -1.55% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.22 times

NET SALES(Q)

Highest at CNY 128.24 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 2.58 MM has Grown at 186.03%

Here's what is working for Chengda Pharmaceuticals Co., Ltd.

Pre-Tax Profit

At CNY 6.4 MM has Grown at 417.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.78 MM has Grown at 354.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 128.24 MM has Grown at 68.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 128.24 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.55% (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 Chengda Pharmaceuticals Co., Ltd.

Interest

At CNY 2.58 MM has Grown at 186.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)