Qinghai Spring Medicinal Resources Technology Co. Ltd. (600381) 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

Qinghai Spring Medicinal Resources Technology Co. Ltd.

Why is Qinghai Spring Medicinal Resources Technology Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 17.37% and Operating profit at 1.04% over the last 5 years

Positive results in Sep 25

ROCE(HY) Highest at -10.24%
INVENTORY TURNOVER RATIO(HY) Highest at 1.16 times
RAW MATERIAL COST(Y) Fallen by -29.18% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.77%, its profits have risen by 58.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.77% 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 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 Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Qinghai Spring Medicinal Resources Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Qinghai Spring Medicinal Resources Technology Co. Ltd.

19.08%

0.97

47.32%

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)

18.18%

EBIT Growth (5y)

10.28%

EBIT to Interest (avg)

-164.18

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.25

Tax Ratio

5.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.15

EV to EBIT

-45.25

EV to EBITDA

-66.61

EV to Capital Employed

3.58

EV to Sales

9.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.91%

ROE (Latest)

-6.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

13What is working for the Company

NET PROFIT(HY)

Higher at CNY -50.77 MM

ROCE(HY)

Highest at -6.19%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.25 times

NET SALES(9M)

Higher at CNY 262.35 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.44 %

-12What is not working for the Company

NET SALES(Q)

At CNY 43.8 MM has Fallen at -48.98%

PRE-TAX PROFIT(Q)

At CNY -16.27 MM has Fallen at -160.14%

NET PROFIT(Q)

At CNY -16.29 MM has Fallen at -74.9%

OPERATING PROFIT MARGIN(Q)

Lowest at -37.54 %

RAW MATERIAL COST(Y)

Grown by 31.21% (YoY

Here's what is working for Qinghai Spring Medicinal Resources Technology Co. Ltd.

Inventory Turnover Ratio

Highest at 1.25 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debt-Equity Ratio

Lowest at -16.44 %

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 Qinghai Spring Medicinal Resources Technology Co. Ltd.

Net Sales

At CNY 43.8 MM has Fallen at -48.98%

over average net sales of the previous four periods of CNY 85.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -16.27 MM has Fallen at -160.14%

over average net sales of the previous four periods of CNY -6.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.29 MM has Fallen at -74.9%

over average net sales of the previous four periods of CNY -9.31 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at -37.54 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 31.21% (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