China Traditional Chinese Medicine Holdings Co. Ltd. (570) 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.

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Sinopharm Group Co., Ltd.

China Resources Pharmaceutical Group Ltd.

Hygeia Healthcare Holdings Co., Ltd.

Hansoh Pharmaceutical Group Co., Ltd.

Innovent Biologics, Inc.

China Traditional Chinese Medicine Holdings Co. Ltd.

HUTCHMED (China) Ltd.

Akeso, Inc.

Why is China Traditional Chinese Medicine Holdings Co. Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -27.03% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jun 25

ROCE(HY) Lowest at -1.25%
NET SALES(Q) Lowest at HKD 8,016.8 MM
OPERATING PROFIT(Q) Lowest at HKD 765.75 MM

With ROE of 2.33%, it has a Expensive valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of -9.55%, its profits have fallen by -66.3%

Below par performance in long term as well as near term

Along with generating -9.55% 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 sell?

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 Traditional Chinese Medicine Holdings Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Traditional Chinese Medicine Holdings Co. Ltd.

-9.55%

-1.87

31.07%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.58%

EBIT Growth (5y)

-27.03%

EBIT to Interest (avg)

7.07

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.66

Tax Ratio

86.88%

Dividend Payout Ratio

30.17%

Pledged Shares

Institutional Holding

0.37%

ROCE (avg)

7.63%

ROE (avg)

6.83%

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

0.49

EV to EBIT

12.77

EV to EBITDA

4.80

EV to Capital Employed

0.45

EV to Sales

0.52

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

3.51%

ROE (Latest)

2.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 6,853.22 MM

DEBT-EQUITY RATIO (HY)

Lowest at -8.13 %

INTEREST COVERAGE RATIO(Q)

Highest at 1,510.26

-10What is not working for the Company

ROCE(HY)

Lowest at -1.25%

NET SALES(Q)

Lowest at HKD 8,016.8 MM

OPERATING PROFIT(Q)

Lowest at HKD 765.75 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.64 times

OPERATING PROFIT MARGIN(Q)

Lowest at 9.55 %

PRE-TAX PROFIT(Q)

Lowest at HKD 171.4 MM

NET PROFIT(Q)

Lowest at HKD 144.52 MM

Here's what is working for China Traditional Chinese Medicine Holdings Co. Ltd.

Interest Coverage Ratio

Highest at 1,510.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -8.13 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Operating Cash Flow

Highest at HKD 6,853.22 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Here's what is not working for China Traditional Chinese Medicine Holdings Co. Ltd.

Net Sales

Lowest at HKD 8,016.8 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 765.75 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 9.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 171.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 144.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Debtors Turnover Ratio

Lowest at 1.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio