Chenguang Biotech Group Co., Ltd. (300138) 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

Chenguang Biotech Group Co., Ltd.

Why is Chenguang Biotech Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 13.20% and Operating profit at 3.54% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.20% and Operating profit at 3.54% over the last 5 years

With a growth in Net Profit of 75.4%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 590.45 MM
RAW MATERIAL COST(Y) Fallen by -320.89% (YoY)
CASH AND EQV(HY) Highest at CNY 6,235.1 MM

With ROE of 6.20%, it has a fair valuation with a 1.95 Price to Book Value

Over the past year, while the stock has generated a return of 32.43%, its profits have fallen by -25.5%
At the current price, the company has a high dividend yield of 1.1

Market Beating Performance

The stock has generated a return of 32.43% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chenguang Biotech Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Chenguang Biotech Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chenguang Biotech Group Co., Ltd.

32.43%

1.20

41.25%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.20%

EBIT Growth (5y)

3.54%

EBIT to Interest (avg)

4.66

Debt to EBITDA (avg)

4.87

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

0.89

Tax Ratio

20.28%

Dividend Payout Ratio

71.51%

Pledged Shares

Institutional Holding

ROCE (avg)

6.79%

ROE (avg)

10.89%

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

1.95

EV to EBIT

32.76

EV to EBITDA

18.83

EV to Capital Employed

1.69

EV to Sales

1.05

PEG Ratio

Dividend Yield

1.09%

ROCE (Latest)

5.17%

ROE (Latest)

6.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 590.45 MM

RAW MATERIAL COST(Y)

Fallen by -320.89% (YoY

CASH AND EQV(HY)

Highest at CNY 6,235.1 MM

PRE-TAX PROFIT(Q)

At CNY 102.16 MM has Grown at 68.81%

NET PROFIT(Q)

At CNY 87.26 MM has Grown at 69.48%

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.77 times

NET SALES(Q)

Lowest at CNY 1,389.71 MM

Here's what is working for Chenguang Biotech Group Co., Ltd.

Operating Cash Flow

Highest at CNY 590.45 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 102.16 MM has Grown at 68.81%

over average net sales of the previous four periods of CNY 60.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 87.26 MM has Grown at 69.48%

over average net sales of the previous four periods of CNY 51.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,235.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -320.89% (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 Chenguang Biotech Group Co., Ltd.

Net Sales

At CNY 1,389.71 MM has Fallen at -22.26%

over average net sales of the previous four periods of CNY 1,787.61 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,389.71 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 13.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio