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 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 Ningbo Menovo Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Menovo Pharmaceutical Co., Ltd.

85.28%

1.65

49.80%

China Shanghai Composite

23.91%

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)

4.64%

EBIT Growth (5y)

-1.64%

EBIT to Interest (avg)

4.39

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.36

Tax Ratio

13.04%

Dividend Payout Ratio

32.52%

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

3.45

EV to EBIT

58.90

EV to EBITDA

35.11

EV to Capital Employed

2.82

EV to Sales

5.77

PEG Ratio

1.23

Dividend Yield

0.13%

ROCE (Latest)

4.79%

ROE (Latest)

4.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 176.64 MM

NET PROFIT(HY)

At CNY 38.35 MM has Grown at 91.43%

ROCE(HY)

Highest at 4.88%

DEBT-EQUITY RATIO (HY)

Lowest at 35.14 %

-4What is not working for the Company

INTEREST(Q)

At CNY 10.67 MM has Grown at 294.06%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.16 times

NET SALES(Q)

At CNY 337.65 MM has Fallen at -10.15%

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

Net Profit

At CNY 38.35 MM has Grown at 91.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 176.64 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)

Debt-Equity Ratio

Lowest at 35.14 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Ningbo Menovo Pharmaceutical Co., Ltd.

Interest

At CNY 10.67 MM has Grown at 294.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 337.65 MM has Fallen at -10.15%

over average net sales of the previous four periods of CNY 375.78 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 1.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio