Jointown Pharmaceutical Group Co., Ltd. (600998) 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

Jointown Pharmaceutical Group Co., Ltd.

Why is Jointown Pharmaceutical Group 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 8.18% and Operating profit at -3.61% 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 9.63% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.18% and Operating profit at -3.61% over the last 5 years

Flat results in Sep 25

INVENTORY TURNOVER RATIO(HY) Lowest at 6.89 times
OPERATING PROFIT(Q) Lowest at CNY 908.43 MM
OPERATING PROFIT MARGIN(Q) Lowest at 2.38 %

With ROE of 10.88%, it has a fair valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 4.15%, its profits have risen by 40.4% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 4.1

Underperformed the market in the last 1 year

The stock has generated a return of 4.15% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jointown Pharmaceutical Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jointown Pharmaceutical Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jointown Pharmaceutical Group Co., Ltd.

-0.2%

-0.08

21.65%

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)

8.18%

EBIT Growth (5y)

-3.61%

EBIT to Interest (avg)

3.00

Debt to EBITDA (avg)

5.94

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

2.26

Tax Ratio

24.12%

Dividend Payout Ratio

40.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.08%

ROE (avg)

9.63%

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

0.88

EV to EBIT

15.59

EV to EBITDA

12.09

EV to Capital Employed

0.94

EV to Sales

0.33

PEG Ratio

0.92

Dividend Yield

4.11%

ROCE (Latest)

6.03%

ROE (Latest)

10.88%

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

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.46% (YoY

CASH AND EQV(HY)

Highest at CNY 35,121.54 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.56 times

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.89 times

OPERATING PROFIT(Q)

Lowest at CNY 908.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.38 %

PRE-TAX PROFIT(Q)

At CNY 669.04 MM has Fallen at -29.6%

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

Cash and Eqv

Highest at CNY 35,121.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.46% (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 Jointown Pharmaceutical Group Co., Ltd.

Operating Profit

Lowest at CNY 908.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 669.04 MM has Fallen at -29.6%

over average net sales of the previous four periods of CNY 950.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio