Hunan Er-Kang Pharmaceutical Co., Ltd. (300267) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hunan Er-Kang Pharmaceutical Co., Ltd.

Why is Hunan Er-Kang Pharmaceutical Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of -14.42% and Operating profit at -244.78% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET SALES(9M) At CNY 860.68 MM has Grown at -14%
NET PROFIT(HY) At CNY -319.91 MM has Grown at -37.83%
ROCE(HY) Lowest at -7.51%

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 14.97%, its profits have fallen by -49.1%

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 Hunan Er-Kang Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Er-Kang Pharmaceutical Co., Ltd.

14.46%

1.36

51.27%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.42%

EBIT Growth (5y)

-244.78%

EBIT to Interest (avg)

-31.64

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.30

Tax Ratio

1.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.47%

ROE (avg)

0.95%

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

1.12

EV to EBIT

-15.37

EV to EBITDA

-42.84

EV to Capital Employed

1.13

EV to Sales

3.92

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.33%

ROE (Latest)

-8.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -49.05% (YoY

NET SALES(Q)

Highest at CNY 350.05 MM

PRE-TAX PROFIT(Q)

Highest at CNY 26.59 MM

NET PROFIT(Q)

Highest at CNY 28.11 MM

EPS(Q)

Highest at CNY 0.01

-17What is not working for the Company

NET SALES(9M)

At CNY 860.68 MM has Grown at -14%

NET PROFIT(HY)

At CNY -319.91 MM has Grown at -37.83%

ROCE(HY)

Lowest at -7.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.4%

INTEREST(Q)

At CNY 2.73 MM has Grown at 154.99%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.7%

Here's what is working for Hunan Er-Kang Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 26.59 MM has Grown at 131.28%

over average net sales of the previous four periods of CNY -85.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 28.11 MM has Grown at 130.13%

over average net sales of the previous four periods of CNY -93.32 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 350.05 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 350.05 MM has Grown at 24.69%

over average net sales of the previous four periods of CNY 280.74 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 26.59 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 28.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -49.05% (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 Hunan Er-Kang Pharmaceutical Co., Ltd.

Interest

At CNY 2.73 MM has Grown at 154.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.4% and Fallen

In each half year 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 5.7%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio