Why is Shaanxi Meibang Pharmaceutical Group Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 8.59%
- The company has been able to generate a Return on Capital Employed (avg) of 8.59% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -2.41% and Operating profit at -26.85% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 7.87% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.41% and Operating profit at -26.85% over the last 5 years
4
With ROE of 4.42%, it has a fair valuation with a 1.93 Price to Book Value
- Over the past year, while the stock has generated a return of -10.01%, its profits have risen by 139.8% ; the PEG ratio of the company is 0.3
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.01% returns
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 Chemicals & Petrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shaanxi Meibang Pharmaceutical Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shaanxi Meibang Pharmaceutical Group Co., Ltd.
-11.29%
1.19
45.64%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.41%
EBIT Growth (5y)
-26.85%
EBIT to Interest (avg)
53.25
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.22
Sales to Capital Employed (avg)
0.62
Tax Ratio
16.47%
Dividend Payout Ratio
41.67%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.52%
ROE (avg)
7.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
Price to Book Value
1.93
EV to EBIT
39.96
EV to EBITDA
26.86
EV to Capital Employed
2.20
EV to Sales
2.12
PEG Ratio
0.31
Dividend Yield
0.22%
ROCE (Latest)
5.51%
ROE (Latest)
4.42%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
15What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 16.35 MM has Grown at 210.73%
ROCE(HY)
Highest at 5.44%
NET PROFIT(Q)
At CNY 15.88 MM has Grown at 190.29%
RAW MATERIAL COST(Y)
Fallen by -21.33% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.11 times
-8What is not working for the Company
INTEREST(9M)
At CNY 0.69 MM has Grown at inf%
OPERATING CASH FLOW(Y)
Lowest at CNY 124.46 MM
DEBT-EQUITY RATIO
(HY)
Highest at -9.68 %
Here's what is working for Shaanxi Meibang Pharmaceutical Group Co., Ltd.
Pre-Tax Profit
At CNY 16.35 MM has Grown at 210.73%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 15.88 MM has Grown at 190.29%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 4.11 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -21.33% (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 Meibang Pharmaceutical Group Co., Ltd.
Interest
At CNY 0.69 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 124.46 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)
Debt-Equity Ratio
Highest at -9.68 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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