Sichuan Goldstone Asia Pharmaceutical, Inc. (300434) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sichuan Goldstone Asia Pharmaceutical, Inc.

Why is Sichuan Goldstone Asia Pharmaceutical, Inc. ?

Poor Management Efficiency with a low ROCE of 7.80%

The company has been able to generate a Return on Capital Employed (avg) of 7.80% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.08% and Operating profit at 5.19% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 0.6 MM has Grown at 158.27%
NET SALES(HY) At CNY 623.77 MM has Grown at -14.28%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.27%

With ROE of 4.44%, it has a fair valuation with a 0.76 Price to Book Value

Over the past year, while the stock has generated a return of 27.16%, its profits have risen by 53.7% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.7

Market Beating performance in long term as well as near term

Along with generating 27.16% returns in the last 1 year, the stock has outperformed 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 Sichuan Goldstone Asia Pharmaceutical, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sichuan Goldstone Asia Pharmaceutical, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Goldstone Asia Pharmaceutical, Inc.

25.79%

1.07

50.04%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.08%

EBIT Growth (5y)

5.19%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.46

Tax Ratio

21.22%

Dividend Payout Ratio

30.21%

Pledged Shares

Institutional Holding

ROCE (avg)

7.80%

ROE (avg)

5.07%

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

0.76

EV to EBIT

12.37

EV to EBITDA

6.93

EV to Capital Employed

0.73

EV to Sales

1.56

PEG Ratio

0.32

Dividend Yield

0.73%

ROCE (Latest)

5.94%

ROE (Latest)

4.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 73.65 MM has Grown at 115.54%

NET PROFIT(Q)

At CNY 61.68 MM has Grown at 176.92%

RAW MATERIAL COST(Y)

Fallen by -5.46% (YoY

-14What is not working for the Company

INTEREST(HY)

At CNY 0.6 MM has Grown at 158.27%

NET SALES(HY)

At CNY 623.77 MM has Grown at -14.28%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.27%

DEBT-EQUITY RATIO (HY)

Highest at -9.16 %

Here's what is working for Sichuan Goldstone Asia Pharmaceutical, Inc.

Pre-Tax Profit

At CNY 73.65 MM has Grown at 115.54%

over average net sales of the previous four periods of CNY 34.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 61.68 MM has Grown at 176.92%

over average net sales of the previous four periods of CNY 22.27 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -5.46% (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 Sichuan Goldstone Asia Pharmaceutical, Inc.

Interest

At CNY 0.6 MM has Grown at 158.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 623.77 MM has Grown at -14.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.27% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at -9.16 %

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