Nanjing Well Pharmaceutical Co., Ltd. (603351) 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

Nanjing Well Pharmaceutical Co., Ltd.

Why is Nanjing Well Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.61%

The company has been able to generate a Return on Capital Employed (avg) of 7.61% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.67% and Operating profit at 9.12% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.02% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.67% and Operating profit at 9.12% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 6.41 MM has Grown at 7.54%
RAW MATERIAL COST(Y) Grown by 8.12% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 20.83 %

With ROE of 8.03%, it has a attractive valuation with a 1.78 Price to Book Value

Over the past year, while the stock has generated a return of -3.90%, its profits have risen by 7.1% ; the PEG ratio of the company is 3.1
At the current price, the company has a high dividend yield of 2.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanjing Well Pharmaceutical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nanjing Well Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Well Pharmaceutical Co., Ltd.

0.65%

0.90

35.79%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.67%

EBIT Growth (5y)

9.12%

EBIT to Interest (avg)

12.35

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.58

Tax Ratio

13.56%

Dividend Payout Ratio

53.83%

Pledged Shares

Institutional Holding

ROCE (avg)

7.66%

ROE (avg)

7.02%

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

1.78

EV to EBIT

19.72

EV to EBITDA

12.51

EV to Capital Employed

1.73

EV to Sales

2.54

PEG Ratio

3.13

Dividend Yield

2.40%

ROCE (Latest)

8.76%

ROE (Latest)

8.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 258.06 MM

CASH AND EQV(HY)

Highest at CNY 650.64 MM

NET SALES(Q)

Highest at CNY 383.29 MM

PRE-TAX PROFIT(Q)

Highest at CNY 47.86 MM

NET PROFIT(Q)

Highest at CNY 40.68 MM

-4What is not working for the Company

INTEREST(HY)

At CNY 6.41 MM has Grown at 7.54%

RAW MATERIAL COST(Y)

Grown by 8.12% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 20.83 %

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

Operating Cash Flow

Highest at CNY 258.06 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 383.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 47.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 40.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 650.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Nanjing Well Pharmaceutical Co., Ltd.

Interest

At CNY 6.41 MM has Grown at 7.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 20.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 8.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales