Chengdu Kanghua Biological Products Co., Ltd. (300841) 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

Chengdu Kanghua Biological Products Co., Ltd.

Why is Chengdu Kanghua Biological Products Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.40% and Operating profit at -12.80% over the last 5 years

Positive results in Mar 26

NET PROFIT(HY) At CNY 60.81 MM has Grown at 188.9%
OPERATING CASH FLOW(Y) Highest at CNY 877.9 MM
RAW MATERIAL COST(Y) Fallen by -8.7% (YoY)

With ROE of 6.39%, it has a fair valuation with a 1.68 Price to Book Value

Over the past year, while the stock has generated a return of -22.13%, its profits have fallen by -28.8%
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -22.13% 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 Chengdu Kanghua Biological Products 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 Chengdu Kanghua Biological Products Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengdu Kanghua Biological Products Co., Ltd.

-25.25%

-0.28

44.53%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.40%

EBIT Growth (5y)

-12.80%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

0.38

Tax Ratio

14.30%

Dividend Payout Ratio

29.55%

Pledged Shares

Institutional Holding

ROCE (avg)

28.87%

ROE (avg)

16.97%

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

1.68

EV to EBIT

19.58

EV to EBITDA

15.45

EV to Capital Employed

1.95

EV to Sales

4.13

PEG Ratio

Dividend Yield

0.77%

ROCE (Latest)

9.95%

ROE (Latest)

6.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Bearish

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

14What is working for the Company

NET PROFIT(HY)

At CNY 60.81 MM has Grown at 188.9%

OPERATING CASH FLOW(Y)

Highest at CNY 877.9 MM

RAW MATERIAL COST(Y)

Fallen by -8.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -28.73 %

NET SALES(Q)

At CNY 172.45 MM has Grown at 25.5%

-4What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 25.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.94 %

Here's what is working for Chengdu Kanghua Biological Products Co., Ltd.

Net Profit

At CNY 60.81 MM has Grown at 188.9%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 877.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 172.45 MM has Grown at 25.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -28.73 %

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 -8.7% (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 Chengdu Kanghua Biological Products Co., Ltd.

Operating Profit

Lowest at CNY 25.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 14.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales