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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.60% and Operating profit at -1.73% over the last 5 years
The company is Net-Debt Free
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 4.60% and Operating profit at -1.73% over the last 5 years

The company has declared positive results in Jun'2026 after 4 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 744.64 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,657.19
CASH AND EQV(HY) Highest at CNY 3,989.67 MM

With ROE of 1.67%, it has a expensive valuation with a 1.38 Price to Book Value

Over the past year, while the stock has generated a return of -20.77%, its profits have fallen by -79.5%
At the current price, the company has a high dividend yield of 1.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Lukang Pharmaceutical 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 Lukang Pharmaceutical Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Lukang Pharmaceutical Co., Ltd.

-21.81%

0.16

31.62%

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)

4.60%

EBIT Growth (5y)

-1.73%

EBIT to Interest (avg)

2.57

Debt to EBITDA (avg)

4.18

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.82

Tax Ratio

37.94%

Dividend Payout Ratio

41.67%

Pledged Shares

Institutional Holding

ROCE (avg)

3.14%

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

1.38

EV to EBIT

54.19

EV to EBITDA

16.30

EV to Capital Employed

1.32

EV to Sales

1.41

PEG Ratio

Dividend Yield

1.40%

ROCE (Latest)

2.44%

ROE (Latest)

1.67%

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

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 744.64 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,657.19

CASH AND EQV(HY)

Highest at CNY 3,989.67 MM

NET SALES(Q)

Highest at CNY 1,621.32 MM

OPERATING PROFIT(Q)

Highest at CNY 196.22 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.1 %

PRE-TAX PROFIT(Q)

Highest at CNY 90.78 MM

NET PROFIT(Q)

Highest at CNY 84.89 MM

EPS(Q)

Highest at CNY 0.08

-2What is not working for the Company

NET PROFIT(9M)

At CNY 109.26 MM has Grown at -29.26%

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

Net Profit

At CNY 84.89 MM has Grown at 290.33%

over average net sales of the previous four periods of CNY 21.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 744.64 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Highest at 1,657.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CNY 90.78 MM has Grown at 146.65%

over average net sales of the previous four periods of CNY 36.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 1,621.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 196.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 12.1 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 90.78 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 84.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,989.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Footer loading