GemPharmatech Co., Ltd. () 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

GemPharmatech Co., Ltd.

Why is GemPharmatech Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.36% and Operating profit at 18.33% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 97.58 MM
DEBT-EQUITY RATIO (HY) Highest at 0 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0 times

With ROE of 4.80%, it has a fair valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of -2.41%, its profits have fallen by -32.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.41% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GemPharmatech Co., 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 GemPharmatech Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

GemPharmatech Co., Ltd.

54.65%

0.62

46.85%

China Shanghai Composite

20.71%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.41%

EBIT Growth (5y)

24.85%

EBIT to Interest (avg)

41.84

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.30

Tax Ratio

9.02%

Dividend Payout Ratio

63.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.99%

ROE (avg)

6.83%

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

3.13

EV to EBIT

39.29

EV to EBITDA

27.47

EV to Capital Employed

4.53

EV to Sales

7.52

PEG Ratio

Dividend Yield

ROCE (Latest)

11.53%

ROE (Latest)

7.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 270.84 MM

NET SALES(HY)

At CNY 424.66 MM has Grown at 22.04%

RAW MATERIAL COST(Y)

Fallen by -2.63% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 53.91 MM

NET PROFIT(Q)

Highest at CNY 46.68 MM

EPS(Q)

Highest at CNY 0.12

-17What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -36.25 %

INTEREST(Q)

At CNY 1.69 MM has Grown at 13.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,735.96

OPERATING PROFIT(Q)

Lowest at CNY 46.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.32 %

Here's what is working for GemPharmatech Co., Ltd.

Operating Cash Flow

Highest at CNY 270.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 424.66 MM has Grown at 22.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 53.91 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 46.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -2.63% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for GemPharmatech Co., Ltd.

Interest

At CNY 1.69 MM has Grown at 13.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,735.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -36.25 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 46.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 22.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales