Ningbo Menovo Pharmaceutical Co., Ltd. (603538) 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

Ningbo Menovo Pharmaceutical Co., Ltd.

Why is Ningbo Menovo 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 3.82% and Operating profit at -7.49% 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 7.75% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.82% and Operating profit at -7.49% over the last 5 years

Positive results in Sep 25

RAW MATERIAL COST(Y) Fallen by -1.08% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.99 times
NET SALES(Q) Highest at CNY 439.46 MM

With ROE of 4.79%, it has a attractive valuation with a 2.11 Price to Book Value

Over the past year, while the stock has generated a return of 56.90%, its profits have risen by 599.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 56.90% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Menovo Pharmaceutical 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 Ningbo Menovo Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Menovo Pharmaceutical Co., Ltd.

113.95%

1.65

49.80%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.82%

EBIT Growth (5y)

-7.49%

EBIT to Interest (avg)

4.39

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.35

Tax Ratio

13.04%

Dividend Payout Ratio

15.88%

Pledged Shares

Institutional Holding

ROCE (avg)

4.73%

ROE (avg)

7.75%

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

2.11

EV to EBIT

47.50

EV to EBITDA

21.14

EV to Capital Employed

1.79

EV to Sales

3.98

PEG Ratio

0.07

Dividend Yield

0.22%

ROCE (Latest)

3.77%

ROE (Latest)

4.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly 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

18What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.99 times

NET SALES(Q)

Highest at CNY 439.46 MM

PRE-TAX PROFIT(Q)

Highest at CNY 53.89 MM

NET PROFIT(Q)

At CNY 44.06 MM has Grown at 82.41%

-8What is not working for the Company

INTEREST(HY)

At CNY 28.77 MM has Grown at 113.17%

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

Net Sales

Highest at CNY 439.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 439.46 MM has Grown at 21.88%

over average net sales of the previous four periods of CNY 360.58 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 53.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 53.89 MM has Grown at 83.11%

over average net sales of the previous four periods of CNY 29.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 44.06 MM has Grown at 82.41%

over average net sales of the previous four periods of CNY 24.16 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 4.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.08% (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 Ningbo Menovo Pharmaceutical Co., Ltd.

Interest

At CNY 28.77 MM has Grown at 113.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)