Shandong Buchang Pharmaceuticals Co., Ltd. (603858) 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

Shandong Buchang Pharmaceuticals Co., Ltd.

Why is Shandong Buchang Pharmaceuticals Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -6.12% and Operating profit at -37.85% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 1,067.07 MM
PRE-TAX PROFIT(Q) At CNY 260.53 MM has Grown at 2,694.24%
NET PROFIT(Q) At CNY 232.97 MM has Grown at 676.7%

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 10.26%, its profits have fallen by -218.2%
At the current price, the company has a high dividend yield of 2.2

Underperformed the market in the last 1 year

The stock has generated a return of 10.26% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Buchang Pharmaceuticals 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 Shandong Buchang Pharmaceuticals Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Buchang Pharmaceuticals Co., Ltd.

-11.54%

0.43

23.11%

China Shanghai Composite

8.25%

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)

-6.80%

EBIT Growth (5y)

-13.88%

EBIT to Interest (avg)

8.14

Debt to EBITDA (avg)

1.59

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.80

Tax Ratio

60.47%

Dividend Payout Ratio

166.86%

Pledged Shares

Institutional Holding

ROCE (avg)

7.45%

ROE (avg)

7.29%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.48

EV to EBIT

15.54

EV to EBITDA

11.81

EV to Capital Employed

1.39

EV to Sales

1.51

PEG Ratio

0.09

Dividend Yield

2.85%

ROCE (Latest)

8.93%

ROE (Latest)

6.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly 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

17What is working for the Company

ROCE(HY)

Highest at 3.61%

RAW MATERIAL COST(Y)

Fallen by -4.88% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.18 times

PRE-TAX PROFIT(Q)

Highest at CNY 394.16 MM

NET PROFIT(Q)

Highest at CNY 322.32 MM

EPS(Q)

Highest at CNY 0.3

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 26.23 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.9 times

NET SALES(Q)

Lowest at CNY 2,579.01 MM

Here's what is working for Shandong Buchang Pharmaceuticals Co., Ltd.

Pre-Tax Profit

Highest at CNY 394.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 322.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.3

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 8.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.88% (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 Shandong Buchang Pharmaceuticals Co., Ltd.

Net Sales

At CNY 2,579.01 MM has Fallen at -13.13%

over average net sales of the previous four periods of CNY 2,968.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 2,579.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 26.23 %

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

Inventory Turnover Ratio

Lowest at 0.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio