Jiangsu Hualan New Pharmaceutical Material 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jiangsu Hualan New Pharmaceutical Material Co., Ltd.

Why is Jiangsu Hualan New Pharmaceutical Material Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.64%

The company has been able to generate a Return on Capital Employed (avg) of 9.64% 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 -6.28% and Operating profit at -42.53% over the last 5 years

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

NET PROFIT(HY) At CNY 11.09 MM has Grown at -71.07%
INTEREST(HY) At CNY 0.09 MM has Grown at 5,974.41%
OPERATING CASH FLOW(Y) Lowest at CNY 54.23 MM

With ROE of 2.12%, it has a expensive valuation with a 2.81 Price to Book Value

Over the past year, while the stock has generated a return of 137.38%, its profits have fallen by -47.6%
At the current price, the company has a high dividend yield of 0.1

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 Packaging)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Jiangsu Hualan New Pharmaceutical Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Hualan New Pharmaceutical Material Co., Ltd.

-100.0%

2.07

53.64%

China Shanghai Composite

24.27%

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)

-6.28%

EBIT Growth (5y)

-42.53%

EBIT to Interest (avg)

53.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.25

Tax Ratio

15.31%

Dividend Payout Ratio

39.75%

Pledged Shares

Institutional Holding

ROCE (avg)

9.64%

ROE (avg)

4.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

2.81

EV to EBIT

126.33

EV to EBITDA

44.81

EV to Capital Employed

4.92

EV to Sales

8.53

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

3.89%

ROE (Latest)

2.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -19.27% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -52.1 %

PRE-TAX PROFIT(Q)

At CNY 18.37 MM has Grown at 67.5%

NET PROFIT(Q)

At CNY 15.73 MM has Grown at 66.35%

-17What is not working for the Company

NET PROFIT(HY)

At CNY 11.09 MM has Grown at -71.07%

INTEREST(HY)

At CNY 0.09 MM has Grown at 5,974.41%

OPERATING CASH FLOW(Y)

Lowest at CNY 54.23 MM

ROCE(HY)

Lowest at 2.49%

Here's what is working for Jiangsu Hualan New Pharmaceutical Material Co., Ltd.

Pre-Tax Profit

At CNY 18.37 MM has Grown at 67.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.73 MM has Grown at 66.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -52.1 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -19.27% (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 Jiangsu Hualan New Pharmaceutical Material Co., Ltd.

Interest

At CNY 0.09 MM has Grown at 5,974.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 54.23 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)