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 3.44% and Operating profit at -2.14% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 497.18 MM
NET PROFIT(HY) Higher at CNY 148.42 MM
ROCE(HY) Highest at 7.19%

With ROE of 7.54%, it has a very expensive valuation with a 3.79 Price to Book Value

Over the past year, while the stock has generated a return of 50.10%, its profits have risen by 192.1% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.1

Market Beating performance in long term as well as near term

Along with generating 50.10% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

50.1%

1.43

54.54%

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)

3.44%

EBIT Growth (5y)

-2.14%

EBIT to Interest (avg)

1.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.51

Tax Ratio

15.28%

Dividend Payout Ratio

61.65%

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

Industry P/E

Price to Book Value

3.79

EV to EBIT

52.47

EV to EBITDA

39.34

EV to Capital Employed

4.46

EV to Sales

5.95

PEG Ratio

0.26

Dividend Yield

1.08%

ROCE (Latest)

8.51%

ROE (Latest)

7.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 497.18 MM

NET PROFIT(HY)

Higher at CNY 148.42 MM

ROCE(HY)

Highest at 7.19%

RAW MATERIAL COST(Y)

Fallen by -4.22% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.83 times

PRE-TAX PROFIT(Q)

Highest at CNY 130.15 MM

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 2,437.91 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.88 times

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

Net Profit

At CNY 148.42 MM has Grown at 143.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 148.42 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 497.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 130.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 130.15 MM has Grown at 65.2%

over average net sales of the previous four periods of CNY 78.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.83 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 -4.22% (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 2,437.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio