Dawnrays Pharmaceutical Holdings Ltd. (2348) 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

Golden Throat Holdings Group Co., Ltd.

Dawnrays Pharmaceutical Holdings Ltd.

Asymchem Laboratories (Tianjin) Co., Ltd.

Shanghai Henlius Biotech, Inc.

Hua Medicine Ltd.

Immunotech Biopharm Ltd.

Transcenta Holding Ltd.

Abbisko Cayman Ltd.

Zhaoke Ophthalmology Ltd.

CStone Pharmaceuticals Co. Ltd.

China Regenerative Medicine International Ltd.

Why is Dawnrays Pharmaceutical Holdings Ltd. ?

High Management Efficiency with a high ROE of 12.81%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -13.14% of over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at HKD 676.69 MM
ROCE(HY) Lowest at 5.34%
RAW MATERIAL COST(Y) Grown by 8.37% (YoY)

With ROE of 5.17%, it has a Very Attractive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of -4.13%, its profits have fallen by -69%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.13% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dawnrays Pharmaceutical Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dawnrays Pharmaceutical Holdings Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dawnrays Pharmaceutical Holdings Ltd.

-100.0%

-0.08

21.39%

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)

2.71%

EBIT Growth (5y)

-13.14%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.43

Tax Ratio

11.58%

Dividend Payout Ratio

15.48%

Pledged Shares

Institutional Holding

ROCE (avg)

20.00%

ROE (avg)

12.81%

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

0.52

EV to EBIT

2.03

EV to EBITDA

1.39

EV to Capital Employed

0.18

EV to Sales

0.31

PEG Ratio

Dividend Yield

3.96%

ROCE (Latest)

8.66%

ROE (Latest)

5.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 20.05%

CASH AND EQV(HY)

Highest at HKD 1,534.27 MM

DEBT-EQUITY RATIO (HY)

Lowest at -42.12 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.08 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 676.69 MM

ROCE(HY)

Lowest at 5.34%

RAW MATERIAL COST(Y)

Grown by 8.37% (YoY

PRE-TAX PROFIT(Q)

Fallen at -76.22%

NET PROFIT(Q)

Fallen at -78.32%

Here's what is working for Dawnrays Pharmaceutical Holdings Ltd.

Cash and Eqv

Highest at HKD 1,534.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -42.12 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 20.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

At HKD 53.27 MM has Grown at 27.3%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Dawnrays Pharmaceutical Holdings Ltd.

Operating Cash Flow

Lowest at HKD 676.69 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Pre-Tax Profit

Fallen at -76.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Fallen at -78.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Raw Material Cost

Grown by 8.37% (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