Hunan Fangsheng Pharmaceutical Co., Ltd. (603998) 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

Hunan Fangsheng Pharmaceutical Co., Ltd.

Why is Hunan Fangsheng Pharmaceutical Co., Ltd. ?

OPERATING CASH FLOW(Y) Highest at CNY 303.14 MM
DEBT-EQUITY RATIO (HY) Lowest at 22.07 %
RAW MATERIAL COST(Y) Fallen by -4.11% (YoY)

With ROE of 17.14%, it has a very attractive valuation with a 3.24 Price to Book Value

Over the past year, while the stock has generated a return of 25.03%, its profits have risen by 34.3% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 3.7

Real-Time Research Report

Verdict Report

How much should you buy?

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hunan Fangsheng Pharmaceutical Co., Ltd.

8.86%

0.20

33.26%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.01%

EBIT Growth (5y)

29.24%

EBIT to Interest (avg)

7.84

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.74

Tax Ratio

11.54%

Dividend Payout Ratio

42.98%

Pledged Shares

Institutional Holding

ROCE (avg)

8.65%

ROE (avg)

12.21%

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

3.24

EV to EBIT

22.15

EV to EBITDA

16.56

EV to Capital Employed

2.75

EV to Sales

3.45

PEG Ratio

0.55

Dividend Yield

3.72%

ROCE (Latest)

12.41%

ROE (Latest)

17.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 303.14 MM

DEBT-EQUITY RATIO (HY)

Lowest at 22.07 %

RAW MATERIAL COST(Y)

Fallen by -4.11% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 111.98 MM

NET PROFIT(Q)

Highest at CNY 99.04 MM

EPS(Q)

Highest at CNY 0.23

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.43 times

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

Operating Cash Flow

Highest at CNY 303.14 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 22.07 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit

Highest at CNY 111.98 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 99.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -4.11% (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 Fangsheng Pharmaceutical Co., Ltd.

Inventory Turnover Ratio

Lowest at 1.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio