Shenzhen New Industries Biomedical Engineering Co., Ltd. (300832) 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

Shenzhen New Industries Biomedical Engineering Co., Ltd.

Why is Shenzhen New Industries Biomedical Engineering Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.46% and Operating profit at 20.57% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At CNY 0.35 MM has Grown at 9.58%
ROCE(HY) Lowest at 17.57%
DEBT-EQUITY RATIO (HY) Highest at -25.51 %

With ROE of 16.97%, it has a fair valuation with a 3.29 Price to Book Value

Over the past year, while the stock has generated a return of -26.79%, its profits have fallen by -11.3%
At the current price, the company has a high dividend yield of 3

Below par performance in long term as well as near term

Along with generating -26.79% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen New Industries Biomedical Engineering 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 Shenzhen New Industries Biomedical Engineering Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen New Industries Biomedical Engineering Co., Ltd.

-25.12%

-1.39

30.39%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.46%

EBIT Growth (5y)

20.57%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.52

Tax Ratio

12.50%

Dividend Payout Ratio

58.19%

Pledged Shares

Institutional Holding

ROCE (avg)

40.76%

ROE (avg)

19.99%

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

3.29

EV to EBIT

15.90

EV to EBITDA

14.50

EV to Capital Employed

4.08

EV to Sales

6.29

PEG Ratio

Dividend Yield

3.02%

ROCE (Latest)

25.65%

ROE (Latest)

16.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,907.6 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -13.46% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 504.26 MM

NET PROFIT(Q)

Highest at CNY 438.39 MM

EPS(Q)

Highest at CNY 0.56

-7What is not working for the Company

INTEREST(9M)

At CNY 0.35 MM has Grown at 9.58%

ROCE(HY)

Lowest at 17.57%

DEBT-EQUITY RATIO (HY)

Highest at -25.51 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.3 times

Here's what is working for Shenzhen New Industries Biomedical Engineering Co., Ltd.

Operating Cash Flow

Highest at CNY 1,907.6 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 504.26 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 438.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.56

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -13.46% (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 Shenzhen New Industries Biomedical Engineering Co., Ltd.

Debt-Equity Ratio

Highest at -25.51 % and Grown

In each half year 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

Interest

At CNY 0.35 MM has Grown at 9.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio