Jiangsu Nhwa Pharmaceutical Co., Ltd. (002262) 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 Nhwa Pharmaceutical Co., Ltd.

Why is Jiangsu Nhwa Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.95% and Operating profit at 12.21% over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CNY 846.43 MM
DEBT-EQUITY RATIO (HY) Highest at -42.55 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.63%

With ROE of 15.83%, it has a fair valuation with a 3.13 Price to Book Value

Over the past year, while the stock has generated a return of -6.55%, its profits have risen by 8.8% ; the PEG ratio of the company is 2.3
At the current price, the company has a high dividend yield of 1.3

Below par performance in long term as well as near term

Along with generating -6.55% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Nhwa Pharmaceutical Co., Ltd.

-6.0%

0.18

30.70%

China Shanghai Composite

15.19%

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)

10.95%

EBIT Growth (5y)

12.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.75

Tax Ratio

11.90%

Dividend Payout Ratio

31.72%

Pledged Shares

Institutional Holding

ROCE (avg)

36.36%

ROE (avg)

16.17%

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

3.13

EV to EBIT

16.55

EV to EBITDA

13.73

EV to Capital Employed

4.74

EV to Sales

3.54

PEG Ratio

2.26

Dividend Yield

1.32%

ROCE (Latest)

28.60%

ROE (Latest)

15.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -1.81% (YoY

CASH AND EQV(HY)

Highest at CNY 7,685.82 MM

OPERATING PROFIT(Q)

Highest at CNY 503.19 MM

PRE-TAX PROFIT(Q)

Highest at CNY 450.85 MM

NET PROFIT(Q)

Highest at CNY 399.79 MM

EPS(Q)

Highest at CNY 0.4

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 846.43 MM

DEBT-EQUITY RATIO (HY)

Highest at -42.55 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.63%

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

Operating Profit

Highest at CNY 503.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 450.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 399.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,685.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.81% (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 Nhwa Pharmaceutical Co., Ltd.

Operating Cash Flow

Lowest at CNY 846.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -42.55 %

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

Debtors Turnover Ratio

Lowest at 3.63%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio