Why is Fuan Pharmaceutical (Group) Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.09%
- The company has been able to generate a Return on Capital Employed (avg) of 2.09% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -4.86% and Operating profit at -6.14% over the last 5 years
3
With a fall in Operating Profit of -66.65%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 2 consecutive quarters
- NET SALES(Q) At CNY 461.21 MM has Fallen at -21.85%
- ROCE(HY) Lowest at 5.19%
- RAW MATERIAL COST(Y) Grown by 18.05% (YoY)
4
Below par performance in long term as well as near term
- Along with generating -9.88% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Fuan Pharmaceutical (Group) Co., Ltd. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Fuan Pharmaceutical (Group) Co., Ltd.
-7.6%
0.77
29.64%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.86%
EBIT Growth (5y)
-6.14%
EBIT to Interest (avg)
-1.18
Debt to EBITDA (avg)
0.18
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
0.48
Tax Ratio
10.56%
Dividend Payout Ratio
21.26%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.09%
ROE (avg)
4.59%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.87
EV to EBIT
25.63
EV to EBITDA
12.90
EV to Capital Employed
0.87
EV to Sales
1.93
PEG Ratio
NA
Dividend Yield
1.54%
ROCE (Latest)
3.40%
ROE (Latest)
5.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-17What is not working for the Company
NET SALES(Q)
At CNY 461.21 MM has Fallen at -21.85%
ROCE(HY)
Lowest at 5.19%
RAW MATERIAL COST(Y)
Grown by 18.05% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.44%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.53%
PRE-TAX PROFIT(Q)
At CNY 41.72 MM has Fallen at -37.69%
Here's what is not working for Fuan Pharmaceutical (Group) Co., Ltd.
Net Sales
At CNY 461.21 MM has Fallen at -21.85%
over average net sales of the previous four periods of CNY 590.18 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 41.72 MM has Fallen at -37.69%
over average net sales of the previous four periods of CNY 66.95 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 1.44%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.53%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 18.05% (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






