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

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 3.02% and Operating profit at -4.12% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 620.2 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,011.46
INVENTORY TURNOVER RATIO(HY) Lowest at 7.9 times

With ROE of 6.01%, it has a very attractive valuation with a 0.57 Price to Book Value

Over the past year, while the stock has generated a return of -9.22%, its profits have risen by 609.3% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 1.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.22% 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.

-7.09%

-2.55

15.95%

China Shanghai Composite

23.91%

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)

3.02%

EBIT Growth (5y)

-4.12%

EBIT to Interest (avg)

6.97

Debt to EBITDA (avg)

2.02

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

2.40

Tax Ratio

100.00%

Dividend Payout Ratio

30.18%

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

0.57

EV to EBIT

11.01

EV to EBITDA

6.77

EV to Capital Employed

0.68

EV to Sales

0.24

PEG Ratio

0.02

Dividend Yield

1.66%

ROCE (Latest)

6.22%

ROE (Latest)

6.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

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

12What is working for the Company

NET PROFIT(HY)

At CNY 518.72 MM has Grown at 828.27%

RAW MATERIAL COST(Y)

Fallen by -21.57% (YoY

CASH AND EQV(HY)

Highest at CNY 12,981.54 MM

DEBT-EQUITY RATIO (HY)

Lowest at 41.91 %

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 620.2 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,011.46

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.9 times

NET SALES(Q)

Lowest at CNY 17,823.41 MM

OPERATING PROFIT(Q)

Lowest at CNY 337.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.89 %

PRE-TAX PROFIT(Q)

Lowest at CNY 306.73 MM

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

Net Profit

At CNY 518.72 MM has Grown at 828.27%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 12,981.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 41.91 %

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 -21.57% (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 National Accord Medicines Corp. Ltd.

Interest Coverage Ratio

Lowest at 1,011.46 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 620.2 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)

Net Sales

Lowest at CNY 17,823.41 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 337.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 306.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio