Jiangxi Synergy Pharmaceutical Co., Ltd. (300636) 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

Jiangxi Synergy Pharmaceutical Co., Ltd.

Why is Jiangxi Synergy 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 11.90% and Operating profit at -1.61% 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 6.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.90% and Operating profit at -1.61% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(9M) At CNY 12.22 MM has Grown at 27.99%
NET PROFIT(HY) At CNY 31.54 MM has Grown at -55.5%
ROCE(HY) Lowest at 3.64%

With ROE of 4.06%, it has a fair valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of -6.09%, its profits have fallen by -19.5%
At the current price, the company has a high dividend yield of 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.09% 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 Jiangxi Synergy 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 Jiangxi Synergy Pharmaceutical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Synergy Pharmaceutical Co., Ltd.

-9.66%

-0.45

33.58%

China Shanghai Composite

14.77%

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)

11.90%

EBIT Growth (5y)

-1.61%

EBIT to Interest (avg)

10.67

Debt to EBITDA (avg)

3.53

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.26

Tax Ratio

4.51%

Dividend Payout Ratio

15.76%

Pledged Shares

Institutional Holding

ROCE (avg)

4.82%

ROE (avg)

6.92%

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

0.64

EV to EBIT

22.77

EV to EBITDA

7.86

EV to Capital Employed

0.66

EV to Sales

2.06

PEG Ratio

Dividend Yield

1.12%

ROCE (Latest)

2.90%

ROE (Latest)

4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 375.03 MM

-18What is not working for the Company

INTEREST(9M)

At CNY 12.22 MM has Grown at 27.99%

NET PROFIT(HY)

At CNY 31.54 MM has Grown at -55.5%

ROCE(HY)

Lowest at 3.64%

INTEREST COVERAGE RATIO(Q)

Lowest at 450.98

RAW MATERIAL COST(Y)

Grown by 23.9% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 13.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.3 %

Here's what is working for Jiangxi Synergy Pharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 375.03 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Jiangxi Synergy Pharmaceutical Co., Ltd.

Net Profit

At CNY 31.54 MM has Grown at -55.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 12.22 MM has Grown at 27.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 450.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 13.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 23.9% (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