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

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 11.25% and Operating profit at 6.20% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY 268.7 MM has Grown at -36.65%
ROCE(HY) Lowest at 13.43%
DEBT-EQUITY RATIO (HY) Highest at -44.49 %

With ROE of 12.80%, it has a fair valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of -5.62%, its profits have fallen by -8.9%
At the current price, the company has a high dividend yield of 2.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.62% 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 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.

-13.64%

-0.52

29.21%

China Shanghai Composite

3.56%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.25%

EBIT Growth (5y)

6.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.74

Tax Ratio

10.27%

Dividend Payout Ratio

38.15%

Pledged Shares

Institutional Holding

ROCE (avg)

32.47%

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

2.21

EV to EBIT

13.31

EV to EBITDA

11.28

EV to Capital Employed

3.19

EV to Sales

2.46

PEG Ratio

Dividend Yield

1.90%

ROCE (Latest)

23.96%

ROE (Latest)

12.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.73% (YoY

CASH AND EQV(HY)

Highest at CNY 7,874.27 MM

OPERATING PROFIT(Q)

Highest at CNY 542.9 MM

OPERATING PROFIT MARGIN(Q)

Highest at 33.76 %

PRE-TAX PROFIT(Q)

Highest at CNY 485.12 MM

NET PROFIT(Q)

Highest at CNY 423.27 MM

EPS(Q)

Highest at CNY 0.42

-5What is not working for the Company

ROCE(HY)

Lowest at 13.66%

DEBT-EQUITY RATIO (HY)

Highest at -39.67 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.37 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.2 times

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

Operating Profit

Highest at CNY 542.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 33.76 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 485.12 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 423.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,874.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.73% (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.

Debt-Equity Ratio

Highest at -39.67 %

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 2.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio