ScoreWhy is Hunan Er-Kang Pharmaceutical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.47%
- The company has been able to generate a Return on Capital Employed (avg) of 0.47% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -14.47% and Operating profit at -225.02% over the last 5 years
3
Negative results in Mar 26
- NET PROFIT(HY) At CNY -407.3 MM has Grown at -27.32%
- ROCE(HY) Lowest at -9.3%
- NET SALES(Q) At CNY 247.39 MM has Fallen at -15.12%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 1.47%, its profits have fallen by -11.5%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 1.47% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%
Real-Time Research ReportHow 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 Hunan Er-Kang Pharmaceutical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hunan Er-Kang Pharmaceutical Co., Ltd.
-11.14%
0.99
52.49%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-14.47%
EBIT Growth (5y)
-225.02%
EBIT to Interest (avg)
-41.73
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.26
Tax Ratio
8.19%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.66
EV to EBIT
-17.03
EV to EBITDA
-26.88
EV to Capital Employed
1.73
EV to Sales
5.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-10.16%
ROE (Latest)
-10.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -44.34% (YoY
NET SALES(Q)
At CNY 320.17 MM has Grown at 20.86%
OPERATING PROFIT(Q)
Highest at CNY 66.65 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20.82 %
PRE-TAX PROFIT(Q)
Highest at CNY 30.46 MM
NET PROFIT(Q)
Highest at CNY 31.36 MM
EPS(Q)
Highest at CNY 0.02
-23What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 59.19 MM
NET SALES(HY)
At CNY 567.56 MM has Grown at -16.77%
NET PROFIT(9M)
At CNY -375.94 MM has Grown at -22.16%
INTEREST(Q)
At CNY 3.11 MM has Grown at 29.37%
DEBT-EQUITY RATIO
(HY)
Highest at -4.19 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.15 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.57 times
Here's what is working for Hunan Er-Kang Pharmaceutical Co., Ltd.
Pre-Tax Profit
At CNY 30.46 MM has Grown at 133.96%
over average net sales of the previous four periods of CNY -89.69 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 31.36 MM has Grown at 132.02%
over average net sales of the previous four periods of CNY -97.93 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
At CNY 320.17 MM has Grown at 20.86%
over average net sales of the previous four periods of CNY 264.9 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 66.65 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 20.82 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY 30.46 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 31.36 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.02
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -44.34% (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
Depreciation
At CNY 39.57 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for Hunan Er-Kang Pharmaceutical Co., Ltd.
Operating Cash Flow
Lowest at CNY 59.19 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 3.11 MM has Grown at 29.37%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at -4.19 %
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
Inventory Turnover Ratio
Lowest at 1.15 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.57 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Footer loading
