Jiangsu Kanion Pharmaceutical Co., Ltd. (600557) 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 Kanion Pharmaceutical Co., Ltd.

Why is Jiangsu Kanion Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -1.96% and Operating profit at -16.74% over the last 5 years

With a fall in PBT of -13.33%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(9M) At CNY 9.06 MM has Grown at 30.23%
OPERATING CASH FLOW(Y) Lowest at CNY 456.65 MM
NET PROFIT(HY) At CNY 116.23 MM has Grown at -38.75%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.35% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Kanion 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 Jiangsu Kanion Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Kanion Pharmaceutical Co., Ltd.

-22.89%

-0.57

34.33%

China Shanghai Composite

21.43%

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)

1.31%

EBIT Growth (5y)

-3.48%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.76

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.05%

ROE (avg)

8.24%

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

1.41

EV to EBIT

20.94

EV to EBITDA

12.77

EV to Capital Employed

1.71

EV to Sales

1.51

PEG Ratio

1.85

Dividend Yield

ROCE (Latest)

8.16%

ROE (Latest)

6.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

4What is working for the Company

NET PROFIT(HY)

At CNY 183.57 MM has Grown at 55.39%

RAW MATERIAL COST(Y)

Fallen by -5.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.7 times

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.99 times

OPERATING PROFIT(Q)

Lowest at CNY 87.21 MM

DEBT-EQUITY RATIO (HY)

Highest at -41.55 %

Here's what is working for Jiangsu Kanion Pharmaceutical Co., Ltd.

Net Profit

At CNY 183.57 MM has Grown at 55.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 4.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.13% (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 Kanion Pharmaceutical Co., Ltd.

Operating Profit

Lowest at CNY 87.21 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.99 times 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

Debt-Equity Ratio

Highest at -41.55 %

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