Huadong Medicine Co., Ltd. (000963) 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

Huadong Medicine Co., Ltd.

Why is Huadong Medicine Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.36% and Operating profit at 7.23% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 4,253.1 MM
RAW MATERIAL COST(Y) Fallen by -8.32% (YoY)
NET SALES(Q) Highest at CNY 11,183.45 MM

With ROE of 13.58%, it has a fair valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of -27.39%, its profits have fallen by -1.5%
At the current price, the company has a high dividend yield of 1.3

Below par performance in long term as well as near term

Along with generating -27.39% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Huadong Medicine Co., Ltd.

-29.78%

-0.29

26.96%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.36%

EBIT Growth (5y)

7.23%

EBIT to Interest (avg)

36.90

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.50

Tax Ratio

17.97%

Dividend Payout Ratio

47.73%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

17.22%

ROE (avg)

14.25%

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

1.88

EV to EBIT

12.21

EV to EBITDA

10.24

EV to Capital Employed

1.84

EV to Sales

1.13

PEG Ratio

Dividend Yield

1.27%

ROCE (Latest)

15.09%

ROE (Latest)

13.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,253.1 MM

RAW MATERIAL COST(Y)

Fallen by -8.32% (YoY

NET SALES(Q)

Highest at CNY 11,183.45 MM

PRE-TAX PROFIT(Q)

Highest at CNY 1,199.7 MM

NET PROFIT(Q)

Highest at CNY 1,002.19 MM

EPS(Q)

Highest at CNY 0.57

-4What is not working for the Company

ROCE(HY)

Lowest at 14.07%

INTEREST(Q)

At CNY 19.18 MM has Grown at 134.36%

Here's what is working for Huadong Medicine Co., Ltd.

Operating Cash Flow

Highest at CNY 4,253.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 11,183.45 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 1,199.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,002.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -8.32% (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 19.18 MM has Grown at 134.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)