Why is Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.37%
- Poor long term growth as Net Sales has grown by an annual rate of 0.10% and Operating profit at 33.77% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared Positive results for the last 3 consecutive quarters
- NET SALES(HY) At CNY 143.44 MM has Grown at 127.88%
- NET PROFIT(HY) Higher at CNY 24.49 MM
- ROCE(HY) Highest at 70.83%
3
With ROE of 76.01%, it has a fair valuation with a 36.15 Price to Book Value
- Over the past year, while the stock has generated a return of 83.21%, its profits have risen by 237.8% ; the PEG ratio of the company is 0.2
4
Market Beating Performance
- The stock has generated a return of 83.21% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%
How much should you hold?
- Overall Portfolio exposure to Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise 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 Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co., Ltd.
83.21%
2.86
40.38%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
0.10%
EBIT Growth (5y)
33.77%
EBIT to Interest (avg)
-3.09
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
1.87
Sales to Capital Employed (avg)
1.21
Tax Ratio
20.22%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.37%
ROE (avg)
12.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
Price to Book Value
36.15
EV to EBIT
41.86
EV to EBITDA
27.96
EV to Capital Employed
12.89
EV to Sales
9.22
PEG Ratio
0.20
Dividend Yield
NA
ROCE (Latest)
30.80%
ROE (Latest)
76.01%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
27What is working for the Company
NET SALES(HY)
At CNY 143.44 MM has Grown at 127.88%
NET PROFIT(HY)
Higher at CNY 24.49 MM
ROCE(HY)
Highest at 70.83%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.68%
RAW MATERIAL COST(Y)
Fallen by -100.82% (YoY
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -42.75 MM
INTEREST(Q)
At CNY 1.32 MM has Grown at 404.88%
PRE-TAX PROFIT(Q)
At CNY 4.57 MM has Fallen at -38.35%
Here's what is working for Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co., Ltd.
Net Sales
At CNY 143.44 MM has Grown at 127.88%
Year on Year (YoY)MOJO Watch
Sales trend is very positive
Net Sales (CNY MM)
Net Profit
At CNY 24.49 MM has Grown at 219.25%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Higher at CNY 24.49 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 2.68% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -100.82% (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 Hangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co., Ltd.
Interest
At CNY 1.32 MM has Grown at 404.88%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY -42.75 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 4.57 MM has Fallen at -38.35%
over average net sales of the previous four periods of CNY 7.41 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)






