Henan Taloph Pharmaceutical Stock Co., Ltd. (600222) 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 Taloph Pharmaceutical Stock Co., Ltd.

Why is Henan Taloph Pharmaceutical Stock Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.63%

The company has been able to generate a Return on Capital Employed (avg) of 2.63% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 5.18% and Operating profit at -3.09% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.18% and Operating profit at -3.09% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(9M) At CNY 1,186.9 MM has Grown at -11.29%
INTEREST COVERAGE RATIO(Q) Lowest at 154.13
INVENTORY TURNOVER RATIO(HY) Lowest at 2.77 times

With ROE of 2.58%, it has a very expensive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of 28.12%, its profits have fallen by -63.5%
At the current price, the company has a high dividend yield of 0.2

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 Henan Taloph Pharmaceutical Stock Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Taloph Pharmaceutical Stock Co., Ltd.

27.85%

1.38

39.07%

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)

5.18%

EBIT Growth (5y)

-3.09%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

6.01

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.84%

Pledged Shares

Institutional Holding

ROCE (avg)

2.63%

ROE (avg)

1.46%

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

2.27

EV to EBIT

63.52

EV to EBITDA

31.95

EV to Capital Employed

1.77

EV to Sales

2.65

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

2.79%

ROE (Latest)

2.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

13What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.6 MM has Grown at 460.25%

NET PROFIT(Q)

At CNY 5.97 MM has Grown at 278.88%

RAW MATERIAL COST(Y)

Fallen by -15.15% (YoY

-11What is not working for the Company

NET SALES(9M)

At CNY 1,186.9 MM has Grown at -11.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 154.13

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.77 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.51 times

INTEREST(Q)

Highest at CNY 16.61 MM

OPERATING PROFIT(Q)

Lowest at CNY 25.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.03 %

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

Pre-Tax Profit

At CNY 9.6 MM has Grown at 460.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.97 MM has Grown at 278.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.15% (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 Taloph Pharmaceutical Stock Co., Ltd.

Interest

At CNY 16.61 MM has Grown at 59.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 154.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 1,186.9 MM has Grown at -11.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 16.61 MM

in the last five periods and Increased by 59.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 25.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.77 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 1.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio