Why is Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd. ?
1
With a fall in Operating Profit of -20.93%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 53.65 MM
- NET PROFIT(HY) At CNY 25.28 MM has Grown at -31.62%
- ROCE(HY) Lowest at 4.11%
2
With ROE of 8.04%, it has a expensive valuation with a 2.58 Price to Book Value
- Over the past year, while the stock has generated a return of 0.58%, its profits have fallen by -25.5%
- At the current price, the company has a high dividend yield of 1
3
Underperformed the market in the last 1 year
- The stock has generated a return of 0.58% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
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?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.
4.75%
1.00
43.36%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
34.34%
EBIT Growth (5y)
69.83%
EBIT to Interest (avg)
19.97
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.36
Tax Ratio
48.75%
Dividend Payout Ratio
47.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.83%
ROE (avg)
6.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
2.58
EV to EBIT
18.14
EV to EBITDA
12.59
EV to Capital Employed
2.80
EV to Sales
1.78
PEG Ratio
NA
Dividend Yield
1.01%
ROCE (Latest)
15.43%
ROE (Latest)
8.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
5What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 6,151.76
PRE-TAX PROFIT(Q)
Highest at CNY 38.24 MM
NET PROFIT(Q)
Highest at CNY 24.21 MM
EPS(Q)
Highest at CNY 0.08
-13What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 53.65 MM
NET PROFIT(HY)
At CNY 25.28 MM has Grown at -31.62%
ROCE(HY)
Lowest at 4.11%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.9%
RAW MATERIAL COST(Y)
Grown by 14.41% (YoY
Here's what is working for Gansu Longshenrongfa Pharmaceutical Industry Co., Ltd.
Interest Coverage Ratio
Highest at 6,151.76
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
Highest at CNY 38.24 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 24.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.08
in the last five periodsMOJO 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.
Inventory Turnover Ratio
Lowest at 2.9% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Cash Flow
Lowest at CNY 53.65 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Raw Material Cost
Grown by 14.41% (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






