Northeast Pharmaceutical Group Co., Ltd. (000597) 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

Northeast Pharmaceutical Group Co., Ltd.

Why is Northeast Pharmaceutical Group 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 -2.17% and Operating profit at 29.26% 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 5.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.17% and Operating profit at 29.26% over the last 5 years

The company declared negative results in Mar'25 after flat results in Dec'24

INTEREST COVERAGE RATIO(Q) Lowest at 604.45
NET PROFIT(Q) At CNY 43.3 MM has Fallen at -54.68%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.36 times

With ROE of 7.15%, it has a fair valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -6.16%, its profits have fallen by -4.4%
At the current price, the company has a high dividend yield of 1.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.16% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Northeast Pharmaceutical Group 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 Northeast Pharmaceutical Group Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Northeast Pharmaceutical Group Co., Ltd.

-3.17%

0.48

27.81%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.17%

EBIT Growth (5y)

29.26%

EBIT to Interest (avg)

3.57

Debt to EBITDA (avg)

2.66

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.73

Tax Ratio

26.62%

Dividend Payout Ratio

34.48%

Pledged Shares

Institutional Holding

ROCE (avg)

4.23%

ROE (avg)

5.42%

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

1.43

EV to EBIT

20.78

EV to EBITDA

8.60

EV to Capital Employed

1.37

EV to Sales

1.17

PEG Ratio

Dividend Yield

1.86%

ROCE (Latest)

6.61%

ROE (Latest)

7.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.1% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 9.37 %

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 604.45

NET PROFIT(Q)

At CNY 43.3 MM has Fallen at -54.68%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.36 times

NET SALES(Q)

At CNY 1,625.48 MM has Fallen at -9.53%

OPERATING PROFIT(Q)

Lowest at CNY 70.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.34 %

PRE-TAX PROFIT(Q)

Lowest at CNY 61.81 MM

Here's what is working for Northeast Pharmaceutical Group Co., Ltd.

Debt-Equity Ratio

Lowest at 9.37 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.1% (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 Northeast Pharmaceutical Group Co., Ltd.

Interest Coverage Ratio

Lowest at 604.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 61.81 MM has Fallen at -49.83%

over average net sales of the previous four periods of CNY 123.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 43.3 MM has Fallen at -54.68%

over average net sales of the previous four periods of CNY 95.55 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,625.48 MM has Fallen at -9.53%

over average net sales of the previous four periods of CNY 1,796.66 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 70.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 61.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio