Nanjing Pharmaceutical Co., Ltd. (600713) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nanjing Pharmaceutical Co., Ltd.

Why is Nanjing Pharmaceutical Co., Ltd. ?

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 7.72% and Operating profit at 7.82% 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 11.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.72% and Operating profit at 7.82% over the last 5 years

ROCE(HY) Lowest at 8.65%
INTEREST(Q) At CNY 69.47 MM has Grown at 17.13%
OPERATING PROFIT(Q) Lowest at CNY 382.09 MM

With ROE of 10.58%, it has a expensive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of -0.95%, its profits have fallen by -1.3%
At the current price, the company has a high dividend yield of 4.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.95% 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 Nanjing Pharmaceutical Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nanjing Pharmaceutical Co., Ltd.

-0.95%

0.68

20.55%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.72%

EBIT Growth (5y)

7.82%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

5.77

Net Debt to Equity (avg)

1.40

Sales to Capital Employed (avg)

2.78

Tax Ratio

25.14%

Dividend Payout Ratio

38.81%

Pledged Shares

Institutional Holding

ROCE (avg)

9.08%

ROE (avg)

11.37%

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

0.75

EV to EBIT

12.14

EV to EBITDA

10.13

EV to Capital Employed

0.91

EV to Sales

0.32

PEG Ratio

Dividend Yield

4.34%

ROCE (Latest)

7.49%

ROE (Latest)

10.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,432.35 MM

RAW MATERIAL COST(Y)

Fallen by -9.4% (YoY

CASH AND EQV(HY)

Highest at CNY 7,208.36 MM

DEBT-EQUITY RATIO (HY)

Lowest at 143.17 %

NET SALES(Q)

Highest at CNY 14,218.12 MM

NET PROFIT(Q)

Highest at CNY 177.08 MM

EPS(Q)

Highest at CNY 0.14

-6What is not working for the Company

ROCE(HY)

Lowest at 8.65%

INTEREST(Q)

At CNY 69.47 MM has Grown at 17.13%

OPERATING PROFIT(Q)

Lowest at CNY 382.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.69 %

Here's what is working for Nanjing Pharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 2,432.35 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)

Net Sales

Highest at CNY 14,218.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 177.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,208.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 143.17 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.4% (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 Nanjing Pharmaceutical Co., Ltd.

Interest

At CNY 69.47 MM has Grown at 17.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 382.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales