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China Meheco Group Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: CNE000000Q29
  • SHG: 600056
CNY
9.05
-0.05 (-0.55%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
China Meheco Group Co., Ltd.

Why is China Meheco Group Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 9.04%
  • The company has been able to generate a Return on Capital Employed (avg) of 9.04% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of -2.67% and Operating profit at -9.93% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 8.92% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.67% and Operating profit at -9.93% over the last 5 years
4
Negative results in Jun 26
  • ROCE(HY) Lowest at 3.62%
  • INTEREST(Q) At CNY 58.99 MM has Grown at 86.45%
  • NET PROFIT(Q) At CNY 66.91 MM has Fallen at -45.31%
5
With ROE of 5.70%, it has a very expensive valuation with a 1.07 Price to Book Value
  • Over the past year, while the stock has generated a return of -21.85%, its profits have risen by 4.4% ; the PEG ratio of the company is 4.3
  • At the current price, the company has a high dividend yield of 2.1
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is China Meheco Group Co., Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
China Meheco Group Co., Ltd.
-21.85%
-0.66
23.84%
China Shanghai Composite
3.23%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-2.67%
EBIT Growth (5y)
-9.93%
EBIT to Interest (avg)
5.60
Debt to EBITDA (avg)
2.68
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
1.83
Tax Ratio
33.28%
Dividend Payout Ratio
30.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.48%
ROE (avg)
8.92%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.07
EV to EBIT
15.56
EV to EBITDA
11.37
EV to Capital Employed
1.05
EV to Sales
0.50
PEG Ratio
4.30
Dividend Yield
2.10%
ROCE (Latest)
6.74%
ROE (Latest)
5.70%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -8.82% (YoY

-11What is not working for the Company
ROCE(HY)

Lowest at 3.62%

INTEREST(Q)

At CNY 58.99 MM has Grown at 86.45%

NET PROFIT(Q)

At CNY 66.91 MM has Fallen at -45.31%

DEBT-EQUITY RATIO (HY)

Highest at 53.84 %

PRE-TAX PROFIT(Q)

Lowest at CNY 150.13 MM

Here's what is working for China Meheco Group Co., Ltd.

Raw Material Cost
Fallen by -8.82% (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 China Meheco Group Co., Ltd.

Interest
At CNY 58.99 MM has Grown at 86.45%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit
At CNY 66.91 MM has Fallen at -45.31%
over average net sales of the previous four periods of CNY 122.35 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit
Lowest at CNY 150.13 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit
At CNY 150.13 MM has Fallen at -38.54%
over average net sales of the previous four periods of CNY 244.28 MM
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio
Highest at 53.84 %
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

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