ScoreWhy is Lushang Freda Pharmaceutical Co., Ltd. ?
1
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 -17.30% and Operating profit at -12.77% 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 9.84% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -17.30% and Operating profit at -12.77% over the last 5 years
3
Negative results in Sep 25
- NET SALES(Q) Lowest at CNY 807.27 MM
- OPERATING PROFIT(Q) Lowest at CNY 11.23 MM
- OPERATING PROFIT MARGIN(Q) Lowest at 1.39 %
4
With ROE of 5.87%, it has a very expensive valuation with a 1.86 Price to Book Value
- Over the past year, while the stock has generated a return of -1.52%, its profits have fallen by -20%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.52% 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 ReportHow 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 Realty)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lushang Freda Pharmaceutical Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lushang Freda Pharmaceutical Co., Ltd.
-11.91%
-0.23
29.95%
China Shanghai Composite
17.07%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-17.30%
EBIT Growth (5y)
-12.77%
EBIT to Interest (avg)
4.65
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
17.48%
Dividend Payout Ratio
45.91%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.45%
ROE (avg)
9.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
1.86
EV to EBIT
23.79
EV to EBITDA
15.50
EV to Capital Employed
3.44
EV to Sales
1.28
PEG Ratio
NA
Dividend Yield
1.45%
ROCE (Latest)
14.48%
ROE (Latest)
5.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 352.14 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by 1.3% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.24 times
-13What is not working for the Company
NET SALES(Q)
Lowest at CNY 807.27 MM
OPERATING PROFIT(Q)
Lowest at CNY 11.23 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.39 %
PRE-TAX PROFIT(Q)
Lowest at CNY 36.26 MM
NET PROFIT(Q)
Lowest at CNY 33.78 MM
EPS(Q)
Lowest at CNY 0.03
Here's what is working for Lushang Freda Pharmaceutical Co., Ltd.
Operating Cash Flow
Highest at CNY 352.14 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)
Debtors Turnover Ratio
Highest at 6.24 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 1.3% (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 Lushang Freda Pharmaceutical Co., Ltd.
Net Sales
At CNY 807.27 MM has Fallen at -15.37%
over average net sales of the previous four periods of CNY 953.92 MMMOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 36.26 MM has Fallen at -43.79%
over average net sales of the previous four periods of CNY 64.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Sales
Lowest at CNY 807.27 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 11.23 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 1.39 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 36.26 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 33.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Net Profit
At CNY 33.78 MM has Fallen at -39.74%
over average net sales of the previous four periods of CNY 56.06 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.03
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Non Operating Income
Highest at CNY 0.69 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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