ScoreWhy is Shandong Lukang Pharmaceutical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.24%
- The company has been able to generate a Return on Capital Employed (avg) of 3.24% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 8.65% and Operating profit at 22.51% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 6.64% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 8.65% and Operating profit at 22.51% over the last 5 years
4
With a fall in Net Profit of -32.22%, the company declared Very Negative results in Sep 25
- OPERATING CASH FLOW(Y) Lowest at CNY 304.05 MM
- ROCE(HY) Lowest at 4.81%
- INTEREST COVERAGE RATIO(Q) Lowest at 214.53
5
With ROE of 5.38%, it has a fair valuation with a 2.24 Price to Book Value
- Over the past year, while the stock has generated a return of -4.76%, its profits have fallen by -50.4%
- At the current price, the company has a high dividend yield of 1.3
Real-Time Research ReportHow 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 Shandong Lukang Pharmaceutical Co., Ltd. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Shandong Lukang Pharmaceutical Co., Ltd.
-100.0%
0.53
32.72%
China Shanghai Composite
21.43%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.60%
EBIT Growth (5y)
-1.73%
EBIT to Interest (avg)
2.60
Debt to EBITDA (avg)
4.98
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
0.82
Tax Ratio
4.32%
Dividend Payout Ratio
41.67%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.24%
ROE (avg)
6.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
74
Industry P/E
Price to Book Value
1.24
EV to EBIT
49.20
EV to EBITDA
14.80
EV to Capital Employed
1.20
EV to Sales
1.28
PEG Ratio
NA
Dividend Yield
1.56%
ROCE (Latest)
2.44%
ROE (Latest)
1.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 835.43 MM
RAW MATERIAL COST(Y)
Fallen by -16.12% (YoY
CASH AND EQV(HY)
Highest at CNY 4,454.34 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 16.92 %
PRE-TAX PROFIT(Q)
At CNY 67.95 MM has Grown at 63.14%
NET PROFIT(Q)
At CNY 53.25 MM has Grown at 89.61%
-20What is not working for the Company
NET PROFIT(HY)
At CNY 24.36 MM has Grown at -80.69%
NET SALES(HY)
At CNY 2,758.21 MM has Grown at -14.11%
ROCE(HY)
Lowest at 1.9%
INTEREST COVERAGE RATIO(Q)
Lowest at 571.75
OPERATING PROFIT(Q)
Lowest at CNY 77.16 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.77 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.39 times
Here's what is working for Shandong Lukang Pharmaceutical Co., Ltd.
Operating Cash Flow
Highest at CNY 835.43 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 67.95 MM has Grown at 63.14%
over average net sales of the previous four periods of CNY 41.65 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 53.25 MM has Grown at 89.61%
over average net sales of the previous four periods of CNY 28.09 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 4,454.34 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 16.92 %
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 -16.12% (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 Shandong Lukang Pharmaceutical Co., Ltd.
Net Sales
At CNY 2,758.21 MM has Grown at -14.11%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Interest Coverage Ratio
Lowest at 571.75
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 77.16 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.77 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 3.39 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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