Kangmei Pharmaceutical Co., Ltd. (600518) 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

Kangmei Pharmaceutical Co., Ltd.

Why is Kangmei Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.67% and Operating profit at 14.07% over the last 5 years

Flat results in Sep 25

PRE-TAX PROFIT(Q) At CNY 2.06 MM has Fallen at -78.51%
NET PROFIT(Q) At CNY -3.8 MM has Fallen at -256.66%
INTEREST(Q) At CNY 1.82 MM has Grown at 24.53%

With ROE of 0.17%, it has a expensive valuation with a 3.88 Price to Book Value

Over the past year, while the stock has generated a return of -12.15%, its profits have fallen by -95%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.15% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kangmei Pharmaceutical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kangmei Pharmaceutical Co., Ltd.

-18.06%

0.00

23.38%

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)

0.67%

EBIT Growth (5y)

14.07%

EBIT to Interest (avg)

-12.02

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.66

Tax Ratio

66.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.12%

ROE (avg)

17.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

2277

Industry P/E

Price to Book Value

3.88

EV to EBIT

-72.16

EV to EBITDA

-1650.13

EV to Capital Employed

4.25

EV to Sales

5.19

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.89%

ROE (Latest)

0.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

14What is working for the Company

NET PROFIT(HY)

At CNY 4.59 MM has Grown at 286.57%

OPERATING CASH FLOW(Y)

Highest at CNY 59.9 MM

RAW MATERIAL COST(Y)

Fallen by -129.24% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -13.74 %

-9What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 2.06 MM has Fallen at -78.51%

NET PROFIT(Q)

At CNY -3.8 MM has Fallen at -256.66%

INTEREST(Q)

At CNY 1.82 MM has Grown at 24.53%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.7 times

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

Operating Cash Flow

Highest at CNY 59.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -13.74 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -129.24% (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 Kangmei Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 2.06 MM has Fallen at -78.51%

over average net sales of the previous four periods of CNY 9.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.8 MM has Fallen at -256.66%

over average net sales of the previous four periods of CNY 2.43 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.82 MM has Grown at 24.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio