Why is Renhe Pharmacy Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.05% and Operating profit at -6.81% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(HY) At CNY 1,888.99 MM has Grown at -22.15%
- OPERATING CASH FLOW(Y) Lowest at CNY 655.1 MM
- NET PROFIT(9M) At CNY 299.28 MM has Grown at -25.08%
3
With ROE of 7.97%, it has a attractive valuation with a 1.24 Price to Book Value
- Over the past year, while the stock has generated a return of 4.64%, its profits have fallen by -16.6%
- At the current price, the company has a high dividend yield of 2.4
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Underperformed the market in the last 1 year
- The stock has generated a return of 4.64% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
How much should you hold?
- Overall Portfolio exposure to Renhe Pharmacy 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 Renhe Pharmacy Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Renhe Pharmacy Co., Ltd.
1.52%
-0.18
24.41%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.05%
EBIT Growth (5y)
-6.81%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.74
Tax Ratio
26.90%
Dividend Payout Ratio
43.09%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
25.78%
ROE (avg)
11.84%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.24
EV to EBIT
8.65
EV to EBITDA
6.84
EV to Capital Employed
1.56
EV to Sales
1.15
PEG Ratio
NA
Dividend Yield
2.39%
ROCE (Latest)
18.01%
ROE (Latest)
7.97%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.12% (YoY
CASH AND EQV(HY)
Highest at CNY 7,568.99 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -60.47 %
-14What is not working for the Company
NET SALES(HY)
At CNY 1,888.99 MM has Grown at -22.15%
OPERATING CASH FLOW(Y)
Lowest at CNY 655.1 MM
NET PROFIT(9M)
At CNY 299.28 MM has Grown at -25.08%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5%
Here's what is working for Renhe Pharmacy Co., Ltd.
Cash and Eqv
Highest at CNY 7,568.99 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -60.47 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -4.12% (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 Renhe Pharmacy Co., Ltd.
Net Sales
At CNY 1,888.99 MM has Grown at -22.15%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 655.1 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Profit
At CNY 299.28 MM has Grown at -25.08%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 5%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






