Luoxin Pharmaceuticals Group Stock Co., Ltd. (002793) 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

Luoxin Pharmaceuticals Group Stock Co., Ltd.

Why is Luoxin Pharmaceuticals Group Stock Co., Ltd. ?

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)

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 -25.90% and Operating profit at -184.38% 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 3.63% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -25.90% and Operating profit at -184.38% over the last 5 years

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 22.88%, its profits have risen by 4%

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 Luoxin Pharmaceuticals Group Stock Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Luoxin Pharmaceuticals Group Stock Co., Ltd.

22.88%

0.20

42.50%

China Shanghai Composite

16.01%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-25.90%

EBIT Growth (5y)

-184.38%

EBIT to Interest (avg)

-2.08

Debt to EBITDA (avg)

1.04

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

0.64

Tax Ratio

12.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.79%

ROE (avg)

3.63%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.84

EV to EBIT

-10.55

EV to EBITDA

-16.12

EV to Capital Employed

2.53

EV to Sales

2.72

PEG Ratio

Dividend Yield

ROCE (Latest)

-23.98%

ROE (Latest)

-49.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

DEBTORS TURNOVER RATIO(HY)

Highest at 3.99 times

RAW MATERIAL COST(Y)

Fallen by -16.86% (YoY

PRE-TAX PROFIT(Q)

At CNY 15.5 MM has Grown at 110.4%

NET PROFIT(Q)

At CNY 5.23 MM has Grown at 103.24%

-3What is not working for the Company

INTEREST(Q)

At CNY 14.93 MM has Grown at 16.93%

CASH AND EQV(HY)

Lowest at CNY 912.83 MM

Here's what is working for Luoxin Pharmaceuticals Group Stock Co., Ltd.

Debtors Turnover Ratio

Highest at 3.99 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At CNY 15.5 MM has Grown at 110.4%

over average net sales of the previous four periods of CNY -149.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.23 MM has Grown at 103.24%

over average net sales of the previous four periods of CNY -161.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -16.86% (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 Luoxin Pharmaceuticals Group Stock Co., Ltd.

Interest

At CNY 14.93 MM has Grown at 16.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 912.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at CNY 0.7 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income