North China Pharmaceutical Co., Ltd. (600812) 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

North China Pharmaceutical Co., Ltd.

Why is North China Pharmaceutical Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.23%

Poor long term growth as Net Sales has grown by an annual rate of -3.15% and Operating profit at -1.12% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 5.12%, it has a expensive valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of -10.86%, its profits have risen by 168.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -10.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 North China Pharmaceutical Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

North China Pharmaceutical Co., Ltd.

-17.78%

1.02

23.46%

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)

-3.15%

EBIT Growth (5y)

-1.12%

EBIT to Interest (avg)

0.90

Debt to EBITDA (avg)

7.81

Net Debt to Equity (avg)

1.86

Sales to Capital Employed (avg)

0.59

Tax Ratio

31.01%

Dividend Payout Ratio

40.54%

Pledged Shares

Institutional Holding

ROCE (avg)

3.23%

ROE (avg)

1.59%

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

1.82

EV to EBIT

29.66

EV to EBITDA

12.62

EV to Capital Employed

1.28

EV to Sales

2.07

PEG Ratio

0.21

Dividend Yield

0.52%

ROCE (Latest)

4.33%

ROE (Latest)

5.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 3.37%

RAW MATERIAL COST(Y)

Fallen by 0.26% (YoY

NET PROFIT(9M)

Higher at CNY 158.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at 180.23 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.94 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 893.61 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 147.79

OPERATING PROFIT MARGIN(Q)

Lowest at 5.74 %

NET SALES(Q)

Lowest at CNY 2,209.79 MM

OPERATING PROFIT(Q)

Lowest at CNY 126.87 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 57.66 MM

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

Net Profit

At CNY 158.5 MM has Grown at 54.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 180.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 158.5 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by 0.26% (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 North China Pharmaceutical Co., Ltd.

Interest Coverage Ratio

Lowest at 147.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 5.74 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY 893.61 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 2,209.79 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 2,209.79 MM has Fallen at -10.84%

over average net sales of the previous four periods of CNY 2,478.37 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 126.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 57.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 57.66 MM has Fallen at -28.92%

over average net sales of the previous four periods of CNY 81.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)