Why is Huadong Medicine Co., Ltd. ?
1
With ROE of 15.20%, it has a very attractive valuation with a 3.05 Price to Book Value
- Over the past year, while the stock has generated a return of 17.84%, its profits have risen by 16.4% ; the PEG ratio of the company is 1.2
- At the current price, the company has a high dividend yield of 2.3
How much should you buy?
- Overall Portfolio exposure to Huadong Medicine 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 Huadong Medicine Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Huadong Medicine Co., Ltd.
-100.0%
1.11
31.92%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.69%
EBIT Growth (5y)
7.58%
EBIT to Interest (avg)
36.90
Debt to EBITDA (avg)
0.10
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
1.57
Tax Ratio
17.97%
Dividend Payout Ratio
46.39%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
17.22%
ROE (avg)
14.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
3.05
EV to EBIT
16.40
EV to EBITDA
13.50
EV to Capital Employed
3.05
EV to Sales
1.71
PEG Ratio
1.23
Dividend Yield
2.25%
ROCE (Latest)
18.59%
ROE (Latest)
15.20%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 15.49%
RAW MATERIAL COST(Y)
Fallen by -4.86% (YoY
CASH AND EQV(HY)
Highest at CNY 8,988.42 MM
NET SALES(Q)
Highest at CNY 10,678.52 MM
-6What is not working for the Company
INTEREST(Q)
At CNY 25.92 MM has Grown at 77.45%
DEBT-EQUITY RATIO
(HY)
Highest at 7.98 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.48%
OPERATING PROFIT(Q)
Lowest at CNY 1,130.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 10.59 %
Here's what is working for Huadong Medicine Co., Ltd.
Net Sales
Highest at CNY 10,678.52 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 8,988.42 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -4.86% (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 Huadong Medicine Co., Ltd.
Interest
At CNY 25.92 MM has Grown at 77.45%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 1,130.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 10.59 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 7.98 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 3.48%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






