Jianmin Pharmaceutical Group Co., Ltd. (600976) 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

Jianmin Pharmaceutical Group Co., Ltd.

Why is Jianmin Pharmaceutical Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.55% and Operating profit at 23.09% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(HY) At CNY 162.2 MM has Grown at -23.05%
ROCE(HY) Lowest at 13.11%
INTEREST(Q) At CNY 2.94 MM has Grown at 40.38%

With ROE of 12.81%, it has a fair valuation with a 2.45 Price to Book Value

Over the past year, while the stock has generated a return of -20.98%, its profits have fallen by -36.3%
At the current price, the company has a high dividend yield of 2.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.98% 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 Jianmin Pharmaceutical Group 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 Jianmin Pharmaceutical Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jianmin Pharmaceutical Group Co., Ltd.

-28.97%

-2.25

21.67%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.55%

EBIT Growth (5y)

23.09%

EBIT to Interest (avg)

52.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.41

Tax Ratio

14.91%

Dividend Payout Ratio

38.12%

Pledged Shares

Institutional Holding

ROCE (avg)

14.21%

ROE (avg)

18.68%

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

2.45

EV to EBIT

34.65

EV to EBITDA

23.64

EV to Capital Employed

3.10

EV to Sales

1.64

PEG Ratio

Dividend Yield

2.24%

ROCE (Latest)

8.94%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 381.17 MM

RAW MATERIAL COST(Y)

Fallen by -43.3% (YoY

CASH AND EQV(HY)

Highest at CNY 2,181.73 MM

-14What is not working for the Company

NET PROFIT(HY)

At CNY 162.2 MM has Grown at -23.05%

ROCE(HY)

Lowest at 13.11%

INTEREST(Q)

At CNY 2.94 MM has Grown at 40.38%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.98 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.84 times

NET SALES(Q)

At CNY 747.33 MM has Fallen at -9.14%

PRE-TAX PROFIT(Q)

At CNY 24.83 MM has Fallen at -39.78%

Here's what is working for Jianmin Pharmaceutical Group Co., Ltd.

Operating Cash Flow

Highest at CNY 381.17 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,181.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -43.3% (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 Jianmin Pharmaceutical Group Co., Ltd.

Interest

At CNY 2.94 MM has Grown at 40.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 162.2 MM has Grown at -23.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

At CNY 747.33 MM has Fallen at -9.14%

over average net sales of the previous four periods of CNY 822.47 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 24.83 MM has Fallen at -39.78%

over average net sales of the previous four periods of CNY 41.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 3.98 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 2.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio