Henan Lingrui Pharmaceutical Co., Ltd. (600285) 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

Henan Lingrui Pharmaceutical Co., Ltd.

Why is Henan Lingrui Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.30% and Operating profit at 20.53% over the last 5 years

Negative results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 11,174.79
DEBT-EQUITY RATIO (HY) Highest at -8.01 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.82 times

With ROE of 25.60%, it has a attractive valuation with a 4.11 Price to Book Value

Over the past year, while the stock has generated a return of 4.97%, its profits have risen by 17.8% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 4

Underperformed the market in the last 1 year

The stock has generated a return of 4.97% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Henan Lingrui 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 Henan Lingrui Pharmaceutical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Henan Lingrui Pharmaceutical Co., Ltd.

4.01%

-0.59

20.95%

China Shanghai Composite

15.17%

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)

11.30%

EBIT Growth (5y)

20.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.12

Tax Ratio

12.98%

Dividend Payout Ratio

70.26%

Pledged Shares

Institutional Holding

ROCE (avg)

29.45%

ROE (avg)

18.32%

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

4.11

EV to EBIT

15.40

EV to EBITDA

13.86

EV to Capital Employed

4.84

EV to Sales

3.28

PEG Ratio

0.73

Dividend Yield

4.05%

ROCE (Latest)

31.41%

ROE (Latest)

25.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,056.47 MM

ROCE(HY)

Highest at 26.04%

RAW MATERIAL COST(Y)

Fallen by -13.26% (YoY

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 11,174.79

DEBT-EQUITY RATIO (HY)

Highest at -8.01 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.82 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.65 times

INTEREST(Q)

Highest at CNY 1.66 MM

Here's what is working for Henan Lingrui Pharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 1,056.47 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -13.26% (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 Henan Lingrui Pharmaceutical Co., Ltd.

Interest

At CNY 1.66 MM has Grown at 52.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 11,174.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.66 MM

in the last five periods and Increased by 52.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -8.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio