Why is Lanzhou Foci Pharmaceutical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.82%
- The company has been able to generate a Return on Capital Employed (avg) of 5.82% signifying low profitability per unit of total capital (equity and debt)
2
With a fall in Net Sales of -1.08%, the company declared Very Negative results in Mar 25
- NET SALES(9M) At CNY 685.99 MM has Grown at -16.13%
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.98%
3
With ROE of 3.01%, it has a expensive valuation with a 2.44 Price to Book Value
- Over the past year, while the stock has generated a return of 9.88%, its profits have risen by 12.9% ; the PEG ratio of the company is 6.3
- At the current price, the company has a high dividend yield of 0.1
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 Lanzhou Foci Pharmaceutical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Lanzhou Foci Pharmaceutical Co., Ltd.
-1.95%
0.92
35.68%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
7.21%
EBIT Growth (5y)
36.93%
EBIT to Interest (avg)
76.92
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
0.57
Tax Ratio
9.23%
Dividend Payout Ratio
10.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.82%
ROE (avg)
5.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
81
Industry P/E
Price to Book Value
2.44
EV to EBIT
138.25
EV to EBITDA
49.22
EV to Capital Employed
2.76
EV to Sales
4.56
PEG Ratio
6.30
Dividend Yield
0.14%
ROCE (Latest)
1.99%
ROE (Latest)
3.01%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 64.37 MM
NET PROFIT(HY)
At CNY 40.38 MM has Grown at 52.62%
RAW MATERIAL COST(Y)
Fallen by -16.79% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -19.78 %
-9What is not working for the Company
NET SALES(9M)
At CNY 685.99 MM has Grown at -16.13%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.98%
Here's what is working for Lanzhou Foci Pharmaceutical Co., Ltd.
Net Profit
At CNY 40.38 MM has Grown at 52.62%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 64.37 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at -19.78 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -16.79% (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 Lanzhou Foci Pharmaceutical Co., Ltd.
Net Sales
At CNY 212.18 MM has Fallen at -12.15%
over average net sales of the previous four periods of CNY 241.53 MMMOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Debtors Turnover Ratio
Lowest at 1.98%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






