Eyebright Medical Technology (Beijing) Co., Ltd. (688050) 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

Eyebright Medical Technology (Beijing) Co., Ltd.

Why is Eyebright Medical Technology (Beijing) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 14.21%

The company has been able to generate a Return on Capital Employed (avg) of 14.21% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 35.69% and Operating profit at 19.17% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 35.69% and Operating profit at 19.17% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY 160.76 MM has Grown at -43.38%
ROCE(HY) Lowest at 8.37%
RAW MATERIAL COST(Y) Grown by 5.86% (YoY)

With ROE of 8.28%, 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 -48.48%, its profits have fallen by -37.2%

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 Eyebright Medical Technology (Beijing) Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eyebright Medical Technology (Beijing) Co., Ltd.

-48.82%

-1.53

31.73%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.69%

EBIT Growth (5y)

19.17%

EBIT to Interest (avg)

61.78

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.43

Tax Ratio

17.51%

Dividend Payout Ratio

22.86%

Pledged Shares

Institutional Holding

ROCE (avg)

14.00%

ROE (avg)

12.24%

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

2.45

EV to EBIT

26.17

EV to EBITDA

17.68

EV to Capital Employed

2.23

EV to Sales

4.94

PEG Ratio

Dividend Yield

0.67%

ROCE (Latest)

8.51%

ROE (Latest)

8.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

NET SALES(Q)

Highest at CNY 534.52 MM

-20What is not working for the Company

NET PROFIT(9M)

At CNY 160.76 MM has Grown at -43.38%

ROCE(HY)

Lowest at 8.37%

RAW MATERIAL COST(Y)

Grown by 5.86% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 16.47 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.92 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.74 times

INTEREST(Q)

Highest at CNY 9.74 MM

Here's what is working for Eyebright Medical Technology (Beijing) Co., Ltd.

Net Sales

At CNY 534.52 MM has Grown at 40.32%

over average net sales of the previous four periods of CNY 380.94 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 534.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Eyebright Medical Technology (Beijing) Co., Ltd.

Net Profit

At CNY 160.76 MM has Grown at -43.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 9.74 MM has Grown at 67.28%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 9.74 MM

in the last five periods and Increased by 67.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 16.47 %

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 1.92 times

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 2.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.86% (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 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income