Shaanxi Kanghui Pharmaceutical Co., Ltd. (603139) 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

Shaanxi Kanghui Pharmaceutical Co., Ltd.

Why is Shaanxi Kanghui Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.04%

The company has been able to generate a Return on Capital Employed (avg) of 1.04% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 0.78% and Operating profit at -252.79% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.78% and Operating profit at -252.79% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(9M) At CNY -191.84 MM has Grown at -114.53%
NET SALES(HY) At CNY 205.33 MM has Grown at -17.05%
DEBT-EQUITY RATIO (HY) Highest at 125.14 %

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 69.09%, its profits have fallen by -109.7%

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 Pharmaceuticals & Biotechnology)

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

Is Shaanxi Kanghui Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shaanxi Kanghui Pharmaceutical Co., Ltd.

64.08%

3.85

53.34%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.78%

EBIT Growth (5y)

-252.79%

EBIT to Interest (avg)

-3.03

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.39

Tax Ratio

1.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.28%

ROE (avg)

1.20%

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

7.57

EV to EBIT

-15.43

EV to EBITDA

-18.38

EV to Capital Employed

4.31

EV to Sales

10.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-27.93%

ROE (Latest)

-52.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -33.63% (YoY

OPERATING PROFIT(Q)

Highest at CNY 9.54 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.52 %

PRE-TAX PROFIT(Q)

At CNY -14.38 MM has Grown at 79.7%

NET PROFIT(Q)

At CNY -11.79 MM has Grown at 84.04%

-19What is not working for the Company

NET PROFIT(9M)

At CNY -191.84 MM has Grown at -114.53%

NET SALES(HY)

At CNY 205.33 MM has Grown at -17.05%

DEBT-EQUITY RATIO (HY)

Highest at 125.14 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.57 times

CASH AND EQV(HY)

Lowest at CNY 115.07 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.25 times

Here's what is working for Shaanxi Kanghui Pharmaceutical Co., Ltd.

Operating Profit

Highest at CNY 9.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 8.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY -14.38 MM has Grown at 79.7%

over average net sales of the previous four periods of CNY -70.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.79 MM has Grown at 84.04%

over average net sales of the previous four periods of CNY -73.84 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -33.63% (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 Shaanxi Kanghui Pharmaceutical Co., Ltd.

Net Sales

At CNY 205.33 MM has Grown at -17.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 125.14 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 1.57 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at CNY 115.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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