Guobang Pharma 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

Guobang Pharma Ltd.

Why is Guobang Pharma Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.64% and Operating profit at 3.96% over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 4.23 times
INTEREST COVERAGE RATIO(Q) Lowest at 4,354.85
OPERATING PROFIT(Q) Lowest at CNY 226.52 MM

With ROE of 10.11%, it has a very attractive valuation with a 1.55 Price to Book Value

Over the past year, while the stock has generated a return of 36.04%, its profits have risen by 26.1% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 1.5

Market Beating Performance

The stock has generated a return of 36.04% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

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 Guobang Pharma Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Guobang Pharma Ltd.

-23.87%

1.94

27.27%

China Shanghai Composite

20.96%

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)

9.64%

EBIT Growth (5y)

3.96%

EBIT to Interest (avg)

41.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.58

Tax Ratio

11.75%

Dividend Payout Ratio

40.55%

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

10.18%

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

1.98

EV to EBIT

17.16

EV to EBITDA

12.46

EV to Capital Employed

2.06

EV to Sales

2.65

PEG Ratio

0.73

Dividend Yield

1.12%

ROCE (Latest)

11.98%

ROE (Latest)

10.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,104.2 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.65 %

-20What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.83 times

INTEREST COVERAGE RATIO(Q)

Lowest at 2,129.61

RAW MATERIAL COST(Y)

Grown by 8.5% (YoY

INTEREST(Q)

Highest at CNY 9.19 MM

OPERATING PROFIT(Q)

Lowest at CNY 195.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.87 %

NET PROFIT(Q)

Fallen at -25.79%

Here's what is working for Guobang Pharma Ltd.

Operating Cash Flow

Highest at CNY 1,104.2 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)

Debt-Equity Ratio

Lowest at -9.65 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Guobang Pharma Ltd.

Interest

At CNY 9.19 MM has Grown at 33.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,129.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 3.83 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 9.19 MM

in the last five periods and Increased by 33.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 195.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -25.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 8.5% (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