Why is Luoxin Pharmaceuticals Group Stock Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.79%
- The company has been able to generate a Return on Capital Employed (avg) of 3.79% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -18.37% and Operating profit at -186.64% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 3.63% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -18.37% and Operating profit at -186.64% over the last 5 years
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -12.04%, its profits have risen by 71.8%
5
Below par performance in long term as well as near term
- Along with generating -12.04% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Luoxin Pharmaceuticals Group Stock 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 Luoxin Pharmaceuticals Group Stock Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Luoxin Pharmaceuticals Group Stock Co., Ltd.
-8.98%
-0.06
39.02%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-18.37%
EBIT Growth (5y)
-186.64%
EBIT to Interest (avg)
-6.75
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.74
Sales to Capital Employed (avg)
0.77
Tax Ratio
2.51%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.42%
ROE (avg)
3.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.76
EV to EBIT
-20.31
EV to EBITDA
-65.55
EV to Capital Employed
2.82
EV to Sales
1.98
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-13.90%
ROE (Latest)
-20.21%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
24What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 345.44 MM
ROCE(HY)
Highest at -20.19%
PRE-TAX PROFIT(Q)
At CNY 33.15 MM has Grown at 159.46%
RAW MATERIAL COST(Y)
Fallen by -15.77% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.47 times
OPERATING PROFIT(Q)
Highest at CNY 88.79 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.72 %
NET PROFIT(Q)
Highest at CNY 25.78 MM
EPS(Q)
Highest at CNY 0.02
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Luoxin Pharmaceuticals Group Stock Co., Ltd.
Operating Cash Flow
Highest at CNY 345.44 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 33.15 MM has Grown at 159.46%
over average net sales of the previous four periods of CNY -55.76 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 25.78 MM has Grown at 143.94%
over average net sales of the previous four periods of CNY -58.68 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Profit
Highest at CNY 88.79 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 15.72 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at CNY 25.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.02
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Highest at 5.47 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -15.77% (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
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