China Medical System Holdings Ltd. (867) 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

Sino Biopharmaceutical Ltd.

WuXi AppTec Co., Ltd.

China Medical System Holdings Ltd.

Sinopharm Group Co., Ltd.

China Resources Pharmaceutical Group Ltd.

Hygeia Healthcare Holdings Co., Ltd.

Hansoh Pharmaceutical Group Co., Ltd.

Innovent Biologics, Inc.

Akeso, Inc.

HUTCHMED (China) Ltd.

BeiGene Ltd.

Why is China Medical System Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 2,867.71 MM
DEBT-EQUITY RATIO (HY) Highest at -29.3 %
OPERATING PROFIT MARGIN(Q) Lowest at 21.14 %

With ROE of 8.06%, it has a Fair valuation with a 1.29 Price to Book Value

Over the past year, while the stock has generated a return of -8.50%, its profits have fallen by -10.8%

Below par performance in long term as well as near term

Along with generating -8.50% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 China Medical System Holdings 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 China Medical System Holdings Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

China Medical System Holdings Ltd.

-8.5%

1.73

37.97%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.64%

EBIT Growth (5y)

-11.25%

EBIT to Interest (avg)

72.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.51

Tax Ratio

35.60%

Dividend Payout Ratio

48.85%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

23.87%

ROE (avg)

19.26%

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

1.29

EV to EBIT

11.33

EV to EBITDA

9.69

EV to Capital Employed

1.42

EV to Sales

2.18

PEG Ratio

Dividend Yield

ROCE (Latest)

12.51%

ROE (Latest)

8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 9,864.82

NET SALES(Q)

Highest at HKD 4,609.04 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.58%

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 2,867.71 MM

DEBT-EQUITY RATIO (HY)

Highest at -29.3 %

OPERATING PROFIT MARGIN(Q)

Lowest at 21.14 %

OPERATING PROFIT(Q)

Lowest at HKD 974.13 MM

Here's what is working for China Medical System Holdings Ltd.

Interest Coverage Ratio

Highest at 9,864.82 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at HKD 4,609.04 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Dividend Payout Ratio

Highest at 62.58%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 159.25 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 159.25 MM has Grown at 22.06%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for China Medical System Holdings Ltd.

Operating Profit Margin

Lowest at 21.14 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -29.3 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at HKD 2,867.71 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD 974.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)