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

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 5.89% and Operating profit at -13.09% over the last 5 years

With a fall in Net Sales of -15.61%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(Q) At CNY 1.92 MM has Fallen at -67.41%
ROCE(HY) Lowest at 1.46%
INTEREST COVERAGE RATIO(Q) Lowest at 35.2

With ROE of 1.96%, it has a very expensive valuation with a 2.47 Price to Book Value

Over the past year, while the stock has generated a return of 13.64%, its profits have fallen by -58.2%
At the current price, the company has a high dividend yield of 1.3

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd.

7.36%

1.05

32.76%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.89%

EBIT Growth (5y)

-13.09%

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

126

Industry P/E

Price to Book Value

2.47

EV to EBIT

105.12

EV to EBITDA

22.85

EV to Capital Employed

2.19

EV to Sales

4.98

PEG Ratio

Dividend Yield

1.25%

ROCE (Latest)

2.08%

ROE (Latest)

1.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-35What is not working for the Company

NET PROFIT(Q)

At CNY 1.92 MM has Fallen at -67.41%

ROCE(HY)

Lowest at 1.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 35.2

RAW MATERIAL COST(Y)

Grown by 25.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 537.28 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.11 times

NET SALES(Q)

Lowest at CNY 134.08 MM

OPERATING PROFIT(Q)

Lowest at CNY 1.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.41 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.21 MM

Here's what is not working for Chongqing Zhengchuan Pharmaceutical Packaging Co., Ltd.

Net Sales

At CNY 134.08 MM has Fallen at -17.9%

over average net sales of the previous four periods of CNY 163.31 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 1.21 MM has Fallen at -81.22%

over average net sales of the previous four periods of CNY 6.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.92 MM has Fallen at -67.41%

over average net sales of the previous four periods of CNY 5.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 35.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 134.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 1.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 537.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 25.12% (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 3.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income