Huaren Pharmaceutical Co., Ltd. (300110) 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

Huaren Pharmaceutical Co., Ltd.

Why is Huaren Pharmaceutical Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.52%

Poor long term growth as Net Sales has grown by an annual rate of -1.24% and Operating profit at -269.55% over the last 5 years
The company is Net-Debt Free

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY 54.58 MM has Grown at -42.87%
OPERATING CASH FLOW(Y) Lowest at CNY 293.96 MM

With ROE of -98.12%, it has a risky valuation with a 2.84 Price to Book Value

Over the past year, while the stock has generated a return of 1.65%, its profits have fallen by -790.3%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 1.65% in the last 1 year, much lower than market (China Shanghai Composite) returns of 24.70%

Real-Time Research Report

Verdict Report

How much should you hold?

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huaren Pharmaceutical Co., Ltd.

1.65%

-0.12

28.18%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.24%

EBIT Growth (5y)

-269.55%

EBIT to Interest (avg)

-0.31

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

0.39

Tax Ratio

0.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.52%

ROE (avg)

5.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.84

EV to EBIT

-3.97

EV to EBITDA

-4.39

EV to Capital Employed

1.93

EV to Sales

4.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-48.67%

ROE (Latest)

-98.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.64% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 0.93 times

NET SALES(Q)

Highest at CNY 352.37 MM

PRE-TAX PROFIT(Q)

At CNY 20.43 MM has Grown at 106.23%

NET PROFIT(Q)

At CNY 17.25 MM has Grown at 105.24%

-6What is not working for the Company

NET PROFIT(9M)

At CNY 54.58 MM has Grown at -42.87%

OPERATING CASH FLOW(Y)

Lowest at CNY 293.96 MM

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

Net Sales

Highest at CNY 352.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 352.37 MM has Grown at 19.07%

over average net sales of the previous four periods of CNY 295.93 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 20.43 MM has Grown at 106.23%

over average net sales of the previous four periods of CNY -328.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.25 MM has Grown at 105.24%

over average net sales of the previous four periods of CNY -329.23 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 0.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.64% (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 Huaren Pharmaceutical Co., Ltd.

Operating Cash Flow

Lowest at CNY 293.96 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)