Jinghua Pharmaceutical Group Co., Ltd. (002349) 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

Jinghua Pharmaceutical Group Co., Ltd.

Why is Jinghua Pharmaceutical Group Co., Ltd. ?

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 322.91 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.38 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.32 times

With ROE of 9.49%, it has a very attractive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of -8.15%, its profits have risen by 13.8% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 1.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.15% 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 Jinghua 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 Jinghua Pharmaceutical Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jinghua Pharmaceutical Group Co., Ltd.

-10.0%

-0.33

25.36%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.47%

EBIT Growth (5y)

33.16%

EBIT to Interest (avg)

61.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.55

Tax Ratio

15.60%

Dividend Payout Ratio

33.42%

Pledged Shares

Institutional Holding

ROCE (avg)

12.76%

ROE (avg)

7.21%

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

1.89

EV to EBIT

14.76

EV to EBITDA

12.18

EV to Capital Employed

2.58

EV to Sales

2.77

PEG Ratio

1.44

Dividend Yield

1.38%

ROCE (Latest)

17.47%

ROE (Latest)

9.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.86% (YoY

CASH AND EQV(HY)

Highest at CNY 2,534.15 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.59 times

NET SALES(Q)

Highest at CNY 379.76 MM

PRE-TAX PROFIT(Q)

Highest at CNY 93.18 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 322.91 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.32 times

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

Net Sales

Highest at CNY 379.76 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 93.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,534.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.86% (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 Jinghua Pharmaceutical Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 322.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 2.38 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 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio