Jiangsu Lianhuan Pharmaceutical Co., Ltd. (600513) 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

Jiangsu Lianhuan Pharmaceutical Co., Ltd.

Why is Jiangsu Lianhuan Pharmaceutical Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.37% and Operating profit at -7.30% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.37% and Operating profit at -7.30% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -24.44 MM
ROCE(HY) Lowest at 5.32%
RAW MATERIAL COST(Y) Grown by 13.74% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 69.48%, its profits have fallen by -99.1%
At the current price, the company has a high dividend yield of 0.5

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 Pharmaceuticals & Biotechnology)

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

Is Jiangsu Lianhuan Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Lianhuan Pharmaceutical Co., Ltd.

69.48%

1.97

60.29%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.37%

EBIT Growth (5y)

-7.30%

EBIT to Interest (avg)

7.49

Debt to EBITDA (avg)

2.74

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

0.96

Tax Ratio

21.08%

Dividend Payout Ratio

30.19%

Pledged Shares

Institutional Holding

ROCE (avg)

9.67%

ROE (avg)

10.90%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

4022

Industry P/E

Price to Book Value

4.16

EV to EBIT

77.26

EV to EBITDA

41.68

EV to Capital Employed

2.67

EV to Sales

2.93

PEG Ratio

Dividend Yield

0.46%

ROCE (Latest)

3.45%

ROE (Latest)

0.10%

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 Bearish

OBV

Mildly Bearish

Mildly Bullish

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

NET SALES(Q)

Highest at CNY 623 MM

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -24.44 MM

ROCE(HY)

Lowest at 5.32%

RAW MATERIAL COST(Y)

Grown by 13.74% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 70.76 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.8%

INTEREST(Q)

Highest at CNY 7.2 MM

NET PROFIT(Q)

Fallen at -29.15%

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

Net Sales

Highest at CNY 623 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Interest

At CNY 7.2 MM has Grown at 19.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -24.44 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 7.2 MM

in the last five periods and Increased by 19.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Fallen at -29.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 70.76 %

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

Inventory Turnover Ratio

Lowest at 2.8%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 13.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales