Why is Chongqing Lummy Pharmaceutical Co., Ltd. ?
1
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
2
Poor long term growth as Net Sales has grown by an annual rate of -13.88% and Operating profit at -2.20% over the last 5 years
3
Negative results in Mar 25
- NET PROFIT(HY) At CNY -75.16 MM has Grown at -283.27%
- NET SALES(HY) At CNY 381 MM has Grown at -9.89%
- ROCE(HY) Lowest at -4.93%
4
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 6.65%, its profits have fallen by -290.5%
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.
-6.93%
1.66
60.80%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.88%
EBIT Growth (5y)
-2.20%
EBIT to Interest (avg)
-8.56
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
0.35
Tax Ratio
2.21%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.88
EV to EBIT
-20.03
EV to EBITDA
-31.50
EV to Capital Employed
2.26
EV to Sales
3.76
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-11.28%
ROE (Latest)
-6.36%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
2What is working for the Company
CASH AND EQV(HY)
Highest at CNY 1,922.06 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1.83%
-23What is not working for the Company
NET PROFIT(HY)
At CNY -75.16 MM has Grown at -283.27%
NET SALES(HY)
At CNY 381 MM has Grown at -9.89%
ROCE(HY)
Lowest at -4.93%
RAW MATERIAL COST(Y)
Grown by 12.62% (YoY
INTEREST(Q)
Highest at CNY 3.59 MM
Here's what is working for Chongqing Lummy Pharmaceutical Co., Ltd.
Cash and Eqv
Highest at CNY 1,922.06 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 1.83%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Chongqing Lummy Pharmaceutical Co., Ltd.
Net Profit
At CNY -75.16 MM has Grown at -283.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 3.59 MM has Grown at 10.76%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 381 MM has Grown at -9.89%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Interest
Highest at CNY 3.59 MM
in the last five periods and Increased by 10.76% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 12.62% (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






