Why is North China Pharmaceutical Co., Ltd. ?
1
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 -2.35% and Operating profit at 0.73% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With ROE of 5.12%, it has a expensive valuation with a 1.72 Price to Book Value
- Over the past year, while the stock has generated a return of 0.69%, 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
3
Underperformed the market in the last 1 year
- The stock has generated a return of 0.69% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%
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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
North China Pharmaceutical Co., Ltd.
0.69%
0.94
31.72%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.35%
EBIT Growth (5y)
0.73%
EBIT to Interest (avg)
0.90
Debt to EBITDA (avg)
7.81
Net Debt to Equity (avg)
1.86
Sales to Capital Employed (avg)
0.60
Tax Ratio
31.01%
Dividend Payout Ratio
40.54%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.23%
ROE (avg)
1.59%
Valuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
1.72
EV to EBIT
28.82
EV to EBITDA
12.26
EV to Capital Employed
1.25
EV to Sales
2.01
PEG Ratio
0.20
Dividend Yield
0.55%
ROCE (Latest)
4.33%
ROE (Latest)
5.12%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
17What is working for the Company
ROCE(HY)
Highest at 3.31%
INTEREST COVERAGE RATIO(Q)
Highest at 442.46
RAW MATERIAL COST(Y)
Fallen by 1.39% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.85%
NET SALES(Q)
Highest at CNY 2,668.68 MM
NET PROFIT(Q)
Highest at CNY 66.01 MM
EPS(Q)
Highest at CNY 0.04
-2What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 898.58 MM
Here's what is working for North China Pharmaceutical Co., Ltd.
Interest Coverage Ratio
Highest at 442.46
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at CNY 2,668.68 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
Highest at CNY 66.01 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY 66.01 MM has Grown at 58.73%
over average net sales of the previous four periods of CNY 41.58 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 2.85%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.39% (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.
Operating Cash Flow
Lowest at CNY 898.58 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






