China National Accord Medicines Corp. Ltd. (000028) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

China National Accord Medicines Corp. Ltd.

Why is China National Accord Medicines Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.34% and Operating profit at -22.15% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY 499.21 MM has Grown at -57.52%
OPERATING CASH FLOW(Y) Lowest at CNY 687.28 MM
RAW MATERIAL COST(Y) Grown by 113.09% (YoY)

With ROE of 1.12%, it has a attractive valuation with a 0.67 Price to Book Value

Over the past year, while the stock has generated a return of -14.74%, its profits have fallen by -88.2%
At the current price, the company has a high dividend yield of 1.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.74% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China National Accord Medicines Corp. 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 National Accord Medicines Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China National Accord Medicines Corp. Ltd.

-15.75%

-1.67

19.25%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.34%

EBIT Growth (5y)

-22.15%

EBIT to Interest (avg)

6.97

Debt to EBITDA (avg)

2.02

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

2.48

Tax Ratio

100.00%

Dividend Payout Ratio

31.70%

Pledged Shares

Institutional Holding

ROCE (avg)

8.27%

ROE (avg)

9.30%

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

0.67

EV to EBIT

37.70

EV to EBITDA

8.39

EV to Capital Employed

0.75

EV to Sales

0.25

PEG Ratio

Dividend Yield

1.47%

ROCE (Latest)

2.00%

ROE (Latest)

1.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

PRE-TAX PROFIT(Q)

Highest at CNY 479.79 MM

NET PROFIT(Q)

Highest at CNY 570.44 MM

-11What is not working for the Company

NET PROFIT(9M)

At CNY 499.21 MM has Grown at -57.52%

OPERATING CASH FLOW(Y)

Lowest at CNY 687.28 MM

RAW MATERIAL COST(Y)

Grown by 113.09% (YoY

CASH AND EQV(HY)

Lowest at CNY 5,541.79 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

Here's what is working for China National Accord Medicines Corp. Ltd.

Pre-Tax Profit

At CNY 479.79 MM has Grown at 1,439.72%

over average net sales of the previous four periods of CNY 31.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 570.44 MM has Grown at 278.21%

over average net sales of the previous four periods of CNY 150.83 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 479.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 570.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for China National Accord Medicines Corp. Ltd.

Operating Cash Flow

Lowest at CNY 687.28 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 5,541.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 113.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales