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 Management Efficiency with a low ROCE of 11.05%

The company has been able to generate a Return on Capital Employed (avg) of 11.05% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.31% and Operating profit at -3.48% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.31% and Operating profit at -3.48% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 6.5 MM has Grown at 7.65%
DEBT-EQUITY RATIO (HY) Highest at -30.44 %

With ROE of 6.16%, it has a fair valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of -19.10%, its profits have risen by 12.4% ; the PEG ratio of the company is 1.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.10% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Kanion Pharmaceutical Co., Ltd.

-19.16%

-0.90

30.87%

China Shanghai Composite

0.9%

0.22

14.72%

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

13.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.40%

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

1.26

EV to EBIT

17.63

EV to EBITDA

10.75

EV to Capital Employed

1.44

EV to Sales

1.27

PEG Ratio

1.64

Dividend Yield

ROCE (Latest)

8.16%

ROE (Latest)

6.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 3,699.39

RAW MATERIAL COST(Y)

Fallen by -7.75% (YoY

NET PROFIT(9M)

Higher at CNY 251.45 MM

OPERATING PROFIT(Q)

Highest at CNY 120.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.53 %

-3What is not working for the Company

INTEREST(HY)

At CNY 6.5 MM has Grown at 7.65%

DEBT-EQUITY RATIO (HY)

Highest at -30.44 %

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

Interest Coverage Ratio

Highest at 3,699.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CNY 251.45 MM has Grown at 41.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 120.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 14.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Higher at CNY 251.45 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -7.75% (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

Depreciation

Highest at CNY 56.66 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

Depreciation

At CNY 56.66 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Jiangsu Kanion Pharmaceutical Co., Ltd.

Interest

At CNY 6.5 MM has Grown at 7.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -30.44 %

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

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