Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd. (300534) 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

Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.

Why is Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd. ?

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 30.65 MM
INTEREST(9M) At CNY 2.07 MM has Grown at 7.74%
NET SALES(Q) At CNY 231.59 MM has Fallen at -15.69%

Below par performance in long term as well as near term

Along with generating -27.30% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.

-100.0%

-0.13

29.48%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.47%

EBIT Growth (5y)

92.50%

EBIT to Interest (avg)

19.97

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.23

Tax Ratio

48.75%

Dividend Payout Ratio

27.61%

Pledged Shares

Institutional Holding

ROCE (avg)

9.83%

ROE (avg)

6.21%

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

1.95

EV to EBIT

16.77

EV to EBITDA

11.71

EV to Capital Employed

2.07

EV to Sales

1.63

PEG Ratio

0.48

Dividend Yield

0.85%

ROCE (Latest)

12.33%

ROE (Latest)

8.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

PRE-TAX PROFIT(Q)

Highest at CNY 38.31 MM

NET PROFIT(Q)

Highest at CNY 24.66 MM

EPS(Q)

Highest at CNY 0.08

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 30.65 MM

INTEREST(9M)

At CNY 2.07 MM has Grown at 7.74%

NET SALES(Q)

At CNY 231.59 MM has Fallen at -15.69%

RAW MATERIAL COST(Y)

Grown by 7.58% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.25 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.04 times

Here's what is working for Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.

Pre-Tax Profit

Highest at CNY 38.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 24.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.

Operating Cash Flow

Lowest at CNY 30.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 231.59 MM has Fallen at -15.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 2.07 MM has Grown at 7.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.25 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 3.04 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 7.58% (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