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 -12.85% and Operating profit at -239.61% over the last 5 years
3
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 38.95%, its profits have fallen by -49.1%
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.
37.31%
1.16
55.20%
China Shanghai Composite
15.17%
1.02
14.86%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-12.85%
EBIT Growth (5y)
-239.61%
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)
0.29
Tax Ratio
1.95%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.47%
ROE (avg)
0.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.61
EV to EBIT
-22.66
EV to EBITDA
-63.17
EV to Capital Employed
1.66
EV to Sales
5.78
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-7.33%
ROE (Latest)
-8.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 305.89 MM
NET SALES(9M)
At CNY 1,006.42 MM has Grown at 17.81%
RAW MATERIAL COST(Y)
Fallen by -11.34% (YoY
PRE-TAX PROFIT(Q)
At CNY 0 MM has Grown at 100%
NET PROFIT(Q)
At CNY 3.41 MM has Grown at 104.02%
-7What is not working for the Company
INTEREST(Q)
Highest at CNY 3.9 MM
Here's what is working for Hunan Er-Kang Pharmaceutical Co., Ltd.
Operating Cash Flow
Highest at CNY 305.89 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 1,006.42 MM has Grown at 17.81%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 0 MM has Grown at 100%
over average net sales of the previous four periods of CNY -78.45 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 3.41 MM has Grown at 104.02%
over average net sales of the previous four periods of CNY -84.85 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Raw Material Cost
Fallen by -11.34% (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
Here's what is not working for Hunan Er-Kang Pharmaceutical Co., Ltd.
Interest
At CNY 3.9 MM has Grown at 108.26%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest
Highest at CNY 3.9 MM
in the last five periods and Increased by 108.26% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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