LBX Pharmacy Chain JSC (603883) 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

LBX Pharmacy Chain JSC

Why is LBX Pharmacy Chain JSC ?

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 10.60% and Operating profit at -3.06% 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 14.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.60% and Operating profit at -3.06% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 6.07%
INTEREST COVERAGE RATIO(Q) Lowest at 657.26
OPERATING PROFIT(Q) Lowest at CNY 186.95 MM

With ROE of 8.50%, it has a very expensive valuation with a 1.84 Price to Book Value

Over the past year, while the stock has generated a return of -8.29%, its profits have fallen by -48%
At the current price, the company has a high dividend yield of 1.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.29% 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 Retailing)

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

Is LBX Pharmacy Chain JSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LBX Pharmacy Chain JSC

-29.5%

-1.19

35.43%

China Shanghai Composite

16.67%

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)

10.60%

EBIT Growth (5y)

-3.06%

EBIT to Interest (avg)

7.30

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

1.51

Tax Ratio

26.26%

Dividend Payout Ratio

59.96%

Pledged Shares

Institutional Holding

ROCE (avg)

10.47%

ROE (avg)

14.45%

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

1.84

EV to EBIT

21.25

EV to EBITDA

7.19

EV to Capital Employed

1.46

EV to Sales

0.82

PEG Ratio

Dividend Yield

1.93%

ROCE (Latest)

6.85%

ROE (Latest)

8.50%

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

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,935.41 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 81.25%

NET PROFIT(9M)

Higher at CNY 527.46 MM

CASH AND EQV(HY)

Highest at CNY 4,434.24 MM

DEBT-EQUITY RATIO (HY)

Lowest at 100.78 %

DIVIDEND PER SHARE(HY)

Highest at CNY 9.23

-6What is not working for the Company

ROCE(HY)

Lowest at 6.07%

INTEREST COVERAGE RATIO(Q)

Lowest at 657.26

OPERATING PROFIT(Q)

Lowest at CNY 186.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.53 %

Here's what is working for LBX Pharmacy Chain JSC

Operating Cash Flow

Highest at CNY 2,935.41 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)

Cash and Eqv

Highest at CNY 4,434.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 100.78 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at CNY 9.23

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Net Profit

Higher at CNY 527.46 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Dividend Payout Ratio

Highest at 81.25%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for LBX Pharmacy Chain JSC

Interest Coverage Ratio

Lowest at 657.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 186.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income