Chongqing Lummy Pharmaceutical Co., Ltd. (300006) 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

Chongqing Lummy Pharmaceutical Co., Ltd.

Why is Chongqing Lummy Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -14.91% and Operating profit at 7.05% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -103.8 MM has Grown at -38.1%
OPERATING CASH FLOW(Y) Lowest at CNY 70 MM
ROCE(HY) Lowest at -7.55%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 31.04%, its profits have fallen by -34.1%

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 Chongqing Lummy Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Lummy Pharmaceutical Co., Ltd.

24.94%

1.90

57.20%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.91%

EBIT Growth (5y)

7.05%

EBIT to Interest (avg)

-10.16

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.35

Tax Ratio

18.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.72

EV to EBIT

-26.65

EV to EBITDA

-35.92

EV to Capital Employed

3.46

EV to Sales

5.58

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.98%

ROE (Latest)

-7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

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

10What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 1.88 times

DEBT-EQUITY RATIO (HY)

Lowest at -33.07 %

PRE-TAX PROFIT(Q)

Highest at CNY 0.75 MM

NET PROFIT(Q)

Highest at CNY -8.4 MM

EPS(Q)

Highest at CNY -0.01

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 83.11 MM

NET PROFIT(9M)

At CNY -112.21 MM has Grown at -20.96%

RAW MATERIAL COST(Y)

Grown by 6.13% (YoY

NET SALES(Q)

Lowest at CNY 168.23 MM

Here's what is working for Chongqing Lummy Pharmaceutical Co., Ltd.

Debtors Turnover Ratio

Highest at 1.88 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY 0.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 0.75 MM has Grown at 102.45%

over average net sales of the previous four periods of CNY -30.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -8.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -8.4 MM has Grown at 75.27%

over average net sales of the previous four periods of CNY -33.99 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -33.07 %

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 Chongqing Lummy Pharmaceutical Co., Ltd.

Operating Cash Flow

Lowest at CNY 83.11 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 168.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 168.23 MM has Fallen at -11%

over average net sales of the previous four periods of CNY 189.02 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 6.13% (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

Non Operating Income

Highest at CNY 14.51 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

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