Hunan Warrant Pharmaceutical Co., Ltd. () 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 Warrant Pharmaceutical Co., Ltd.

Why is Hunan Warrant Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.16% and Operating profit at -15.29% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At CNY 0.02 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CNY 127.39 MM
NET SALES(HY) At CNY 669.09 MM has Grown at -9.49%

With ROE of 5.51%, it has a expensive valuation with a 4.06 Price to Book Value

Over the past year, while the stock has generated a return of 64.51%, its profits have fallen by -46.4%
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 64.51% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.44%

Real-Time Research Report

Verdict Report

How much should you hold?

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Warrant Pharmaceutical Co., Ltd.

-100.0%

0.91

63.19%

China Shanghai Composite

15.44%

1.06

14.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.16%

EBIT Growth (5y)

-15.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.75

Tax Ratio

11.03%

Dividend Payout Ratio

24.46%

Pledged Shares

Institutional Holding

ROCE (avg)

16.36%

ROE (avg)

12.38%

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

4.06

EV to EBIT

78.28

EV to EBITDA

42.57

EV to Capital Employed

4.72

EV to Sales

5.23

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

6.03%

ROE (Latest)

5.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.08% (YoY

-27What is not working for the Company

INTEREST(9M)

At CNY 0.02 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CNY 127.39 MM

NET SALES(HY)

At CNY 669.09 MM has Grown at -9.49%

ROCE(HY)

Lowest at 8%

DEBT-EQUITY RATIO (HY)

Highest at -7.94 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.4%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.01%

PRE-TAX PROFIT(Q)

Fallen at -31.9%

NET PROFIT(Q)

Fallen at -31.37%

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

Raw Material Cost

Fallen by -1.08% (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 Warrant Pharmaceutical Co., Ltd.

Interest

At CNY 0.02 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 127.39 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 669.09 MM has Grown at -9.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -7.94 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Pre-Tax Profit

Fallen at -31.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -31.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.4%

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 6.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio