Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317) 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

Guangdong Zhongsheng Pharmaceutical Co., Ltd.

Why is Guangdong Zhongsheng Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.95% and Operating profit at -204.91% over the last 5 years

PRE-TAX PROFIT(Q) At CNY 72.43 MM has Grown at 218.46%
NET PROFIT(Q) At CNY 63.26 MM has Grown at 221.68%
RAW MATERIAL COST(Y) Fallen by -4.58% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 66.19%, its profits have fallen by -265%
At the current price, the company has a high dividend yield of 1.2

Market Beating Performance

The stock has generated a return of 66.19% in the last 1 year, much higher than market (China Shanghai Composite) returns of 17.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Zhongsheng Pharmaceutical 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 Guangdong Zhongsheng Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Zhongsheng Pharmaceutical Co., Ltd.

66.19%

0.80

57.49%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.95%

EBIT Growth (5y)

-204.91%

EBIT to Interest (avg)

1.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.50

Tax Ratio

15.28%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.05%

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

NA (Loss Making)

Industry P/E

Price to Book Value

3.67

EV to EBIT

-45.83

EV to EBITDA

-78.21

EV to Capital Employed

4.30

EV to Sales

5.75

PEG Ratio

Dividend Yield

1.18%

ROCE (Latest)

-9.39%

ROE (Latest)

-7.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

14What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 72.43 MM has Grown at 218.46%

NET PROFIT(Q)

At CNY 63.26 MM has Grown at 221.68%

RAW MATERIAL COST(Y)

Fallen by -4.58% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.63 times

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 2,614.98 MM

Here's what is working for Guangdong Zhongsheng Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 72.43 MM has Grown at 218.46%

over average net sales of the previous four periods of CNY -61.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 63.26 MM has Grown at 221.68%

over average net sales of the previous four periods of CNY -51.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.58% (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 Guangdong Zhongsheng Pharmaceutical Co., Ltd.

Cash and Eqv

Lowest at CNY 2,614.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at CNY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income