GuangYuYuan Chinese Herbal Medicine Co., Ltd. (600771) 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

GuangYuYuan Chinese Herbal Medicine Co., Ltd.

Why is GuangYuYuan Chinese Herbal Medicine Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 5.61% and Operating profit at 41.38% over the last 5 years

Flat results in Sep 25

NET SALES(Q) At CNY 281.44 MM has Fallen at -15.47%
NET PROFIT(Q) Lowest at CNY 2.03 MM
EPS(Q) Lowest at CNY 0

With ROE of 5.78%, it has a very expensive valuation with a 5.66 Price to Book Value

Over the past year, while the stock has generated a return of -1.20%, its profits have fallen by -37.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.20% 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 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.

-36.13%

-0.84

26.20%

China Shanghai Composite

16.78%

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)

6.04%

EBIT Growth (5y)

47.05%

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)

0.78

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.39%

ROE (avg)

3.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

103

Industry P/E

Price to Book Value

4.09

EV to EBIT

60.36

EV to EBITDA

45.29

EV to Capital Employed

5.01

EV to Sales

4.55

PEG Ratio

Dividend Yield

ROCE (Latest)

8.30%

ROE (Latest)

3.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

16What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.57 times

RAW MATERIAL COST(Y)

Fallen by -2.99% (YoY

CASH AND EQV(HY)

Highest at CNY 708.18 MM

DEBT-EQUITY RATIO (HY)

Lowest at -21.67 %

NET SALES(Q)

Highest at CNY 488.22 MM

PRE-TAX PROFIT(Q)

Highest at CNY 74.88 MM

NET PROFIT(Q)

Highest at CNY 66.74 MM

EPS(Q)

Highest at CNY 0.14

-11What is not working for the Company

INTEREST(HY)

At CNY 1.27 MM has Grown at 80.28%

NET PROFIT(HY)

At CNY 50.9 MM has Grown at -24.12%

ROCE(HY)

Lowest at 3.97%

Here's what is working for GuangYuYuan Chinese Herbal Medicine Co., Ltd.

Net Profit

At CNY 66.74 MM has Grown at 323.44%

over average net sales of the previous four periods of CNY 15.76 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 488.22 MM has Grown at 42.62%

over average net sales of the previous four periods of CNY 342.33 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 74.88 MM has Grown at 186.71%

over average net sales of the previous four periods of CNY 26.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.57 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at CNY 488.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 74.88 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 66.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 708.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -21.67 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.99% (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 GuangYuYuan Chinese Herbal Medicine Co., Ltd.

Interest

At CNY 1.27 MM has Grown at 80.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)