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 hold?

Overall Portfolio exposure to Qinghai Spring Medicinal Resources Technology Co. Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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.

-32.43%

0.97

47.32%

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)

17.37%

EBIT Growth (5y)

1.04%

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)

0.21

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

2.79

EV to EBIT

-25.08

EV to EBITDA

-36.00

EV to Capital Employed

3.06

EV to Sales

10.95

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.19%

ROE (Latest)

-10.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

19What is working for the Company

ROCE(HY)

Highest at -10.24%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.16 times

RAW MATERIAL COST(Y)

Fallen by -29.18% (YoY

NET SALES(Q)

Highest at CNY 86.82 MM

PRE-TAX PROFIT(Q)

At CNY -3.23 MM has Grown at 87.86%

NET PROFIT(Q)

At CNY -4.15 MM has Grown at 84.12%

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -7.31 MM

CASH AND EQV(HY)

Lowest at CNY 269.99 MM

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

Net Sales

At CNY 86.82 MM has Grown at 35.98%

over average net sales of the previous four periods of CNY 63.85 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.16 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

Net Sales

Highest at CNY 86.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -3.23 MM has Grown at 87.86%

over average net sales of the previous four periods of CNY -26.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.15 MM has Grown at 84.12%

over average net sales of the previous four periods of CNY -26.12 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -29.18% (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 Qinghai Spring Medicinal Resources Technology Co. Ltd.

Operating Cash Flow

Lowest at CNY -7.31 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 269.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents