Why is GuangYuYuan Chinese Herbal Medicine Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.39%
- The company has been able to generate a Return on Capital Employed (avg) of 3.39% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 3.63% and Operating profit at 5.08% over the last 5 years
3
Flat results in Jun 25
- NET PROFIT(Q) At CNY 13.27 MM has Fallen at -45.12%
- RAW MATERIAL COST(Y) Grown by 8.18% (YoY)
4
With ROE of 5.78%, it has a very expensive valuation with a 5.70 Price to Book Value
- Over the past year, while the stock has generated a return of -3.93%, its profits have fallen by -37.9%
5
Below par performance in long term as well as near term
- Along with generating -3.93% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 GuangYuYuan Chinese Herbal Medicine Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
GuangYuYuan Chinese Herbal Medicine Co., Ltd.
-3.93%
-0.51
26.98%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
3.63%
EBIT Growth (5y)
5.08%
EBIT to Interest (avg)
-0.81
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
0.68
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.39%
ROE (avg)
3.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
99
Industry P/E
Price to Book Value
5.70
EV to EBIT
101.00
EV to EBITDA
68.50
EV to Capital Employed
6.57
EV to Sales
6.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.50%
ROE (Latest)
5.78%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
5What is working for the Company
NET PROFIT(HY)
Higher at CNY 76.86 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 2.35%
DEBT-EQUITY RATIO
(HY)
Lowest at -13.77 %
-6What is not working for the Company
NET PROFIT(Q)
At CNY 13.27 MM has Fallen at -45.12%
RAW MATERIAL COST(Y)
Grown by 8.18% (YoY
Here's what is working for GuangYuYuan Chinese Herbal Medicine Co., Ltd.
Debtors Turnover Ratio
Highest at 2.35% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Debt-Equity Ratio
Lowest at -13.77 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
At CNY 12.17 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for GuangYuYuan Chinese Herbal Medicine Co., Ltd.
Net Profit
At CNY 13.27 MM has Fallen at -45.12%
over average net sales of the previous four periods of CNY 24.18 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Raw Material Cost
Grown by 8.18% (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






