PKU HealthCare Corp., Ltd. (000788) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

PKU HealthCare Corp., Ltd.

Why is PKU HealthCare Corp., Ltd. ?

Poor Management Efficiency with a low ROCE of 8.60%

The company has been able to generate a Return on Capital Employed (avg) of 8.60% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.76% and Operating profit at 19.16% over the last 5 years

Negative results in Mar 25

RAW MATERIAL COST(Y) Grown by 20.29% (YoY)
INTEREST(Q) Highest at CNY 1.86 MM

With ROE of 9.49%, it has a fair valuation with a 2.22 Price to Book Value

Over the past year, while the stock has generated a return of -0.92%, its profits have risen by 52.4% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 1.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.92% 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 PKU HealthCare Corp., 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 PKU HealthCare Corp., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

PKU HealthCare Corp., Ltd.

14.63%

0.67

39.27%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.76%

EBIT Growth (5y)

19.16%

EBIT to Interest (avg)

13.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.30

Tax Ratio

19.55%

Dividend Payout Ratio

34.56%

Pledged Shares

Institutional Holding

ROCE (avg)

8.60%

ROE (avg)

4.96%

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

2.22

EV to EBIT

17.28

EV to EBITDA

13.34

EV to Capital Employed

2.77

EV to Sales

1.53

PEG Ratio

0.45

Dividend Yield

1.34%

ROCE (Latest)

16.03%

ROE (Latest)

9.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 327.78 MM

NET PROFIT(9M)

At CNY 96.81 MM has Grown at 70.88%

ROCE(HY)

Highest at 9.22%

DEBT-EQUITY RATIO (HY)

Lowest at -28.71 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.78%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.54%

EPS(Q)

Highest at CNY 0.08

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 20.29% (YoY

INTEREST(Q)

Highest at CNY 1.86 MM

Here's what is working for PKU HealthCare Corp., Ltd.

Operating Cash Flow

Highest at CNY 327.78 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 -28.71 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Profit

Highest at CNY 45.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 7.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for PKU HealthCare Corp., Ltd.

Interest

Highest at CNY 1.86 MM

in the last five periods and Increased by 6.2% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 20.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales