Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd. (603976) 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

Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd.

Why is Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.45% and Operating profit at -10.55% over the last 5 years

With a fall in Net Sales of -0.14%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(9M) At CNY 19.74 MM has Grown at -40.34%
NET SALES(Q) At CNY 159.1 MM has Fallen at -19.57%
OPERATING CASH FLOW(Y) Lowest at CNY 129.82 MM

With ROE of 1.96%, it has a very expensive valuation with a 2.45 Price to Book Value

Over the past year, while the stock has generated a return of 10.04%, its profits have fallen by -58.2%
At the current price, the company has a high dividend yield of 1.8

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 Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd.

10.04%

1.10

34.59%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.45%

EBIT Growth (5y)

-10.55%

EBIT to Interest (avg)

11.73

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.86%

Dividend Payout Ratio

98.24%

Pledged Shares

Institutional Holding

ROCE (avg)

5.18%

ROE (avg)

5.19%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

125

Industry P/E

Price to Book Value

2.45

EV to EBIT

104.34

EV to EBITDA

22.68

EV to Capital Employed

2.17

EV to Sales

4.94

PEG Ratio

Dividend Yield

1.78%

ROCE (Latest)

2.08%

ROE (Latest)

1.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.26% (YoY

-30What is not working for the Company

NET PROFIT(9M)

At CNY 19.74 MM has Grown at -40.34%

NET SALES(Q)

At CNY 159.1 MM has Fallen at -19.57%

OPERATING CASH FLOW(Y)

Lowest at CNY 129.82 MM

ROCE(HY)

Lowest at 3.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 242.17

DEBT-EQUITY RATIO (HY)

Highest at 22.51 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.75%

OPERATING PROFIT(Q)

Lowest at CNY 12.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.94 %

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

Raw Material Cost

Fallen by -8.26% (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 Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd.

Net Profit

At CNY 11.65 MM has Grown at -52.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 159.1 MM has Fallen at -19.57%

over average net sales of the previous four periods of CNY 197.82 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 242.17

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 129.82 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 12.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 22.51 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.47%

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 1.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio