Shandong Lukang Pharmaceutical Co., Ltd. (600789) 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 Lukang Pharmaceutical Co., Ltd.

Why is Shandong Lukang Pharmaceutical Co., Ltd. ?

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)

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

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

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

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 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 Shandong Lukang Pharmaceutical Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Lukang Pharmaceutical Co., Ltd.

-13.74%

0.53

32.72%

China Shanghai Composite

13.33%

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)

8.65%

EBIT Growth (5y)

22.51%

EBIT to Interest (avg)

2.60

Debt to EBITDA (avg)

4.98

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.87

Tax Ratio

4.32%

Dividend Payout Ratio

30.00%

Pledged Shares

Institutional Holding

ROCE (avg)

3.24%

ROE (avg)

6.64%

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

2.24

EV to EBIT

42.57

EV to EBITDA

16.61

EV to Capital Employed

1.74

EV to Sales

1.90

PEG Ratio

Dividend Yield

1.33%

ROCE (Latest)

4.08%

ROE (Latest)

5.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.79% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 62.5 %

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 304.05 MM

ROCE(HY)

Lowest at 4.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 214.53

OPERATING PROFIT(Q)

Lowest at CNY 33.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.31 %

PRE-TAX PROFIT(Q)

Lowest at CNY 44.44 MM

NET PROFIT(Q)

At CNY 34.36 MM has Fallen at -31.74%

Here's what is working for Shandong Lukang Pharmaceutical Co., Ltd.

Debt-Equity Ratio

Lowest at 62.5 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.79% (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.

Operating Cash Flow

Lowest at CNY 304.05 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 214.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 33.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 44.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 44.44 MM has Fallen at -32.1%

over average net sales of the previous four periods of CNY 65.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.36 MM has Fallen at -31.74%

over average net sales of the previous four periods of CNY 50.34 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 0.59 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income