Simcere Pharmaceutical Group Ltd. (2096) 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

Sino Biopharmaceutical Ltd.

China Medical System Holdings Ltd.

WuXi AppTec Co., Ltd.

Simcere Pharmaceutical Group Ltd.

Sinopharm Group Co., Ltd.

China Resources Pharmaceutical Group Ltd.

Hygeia Healthcare Holdings Co., Ltd.

China Traditional Chinese Medicine Holdings Co. Ltd.

Innovent Biologics, Inc.

HUTCHMED (China) Ltd.

Akeso, Inc.

Why is Simcere Pharmaceutical Group Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 4.39% of over the last 5 years

Flat results in Dec 24

INTEREST COVERAGE RATIO(Q) Lowest at 1,192.06
CASH AND EQV(HY) Lowest at HKD 2,116.86 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.17%

With ROE of 10.60%, it has a Very Expensive valuation with a 4.67 Price to Book Value

Over the past year, while the stock has generated a return of 85.67%, its profits have fallen by -13.4%

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 Simcere Pharmaceutical Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Simcere Pharmaceutical Group Ltd.

84.63%

2.19

54.57%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.74%

EBIT Growth (5y)

4.39%

EBIT to Interest (avg)

9.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.71

Tax Ratio

10.61%

Dividend Payout Ratio

55.26%

Pledged Shares

Institutional Holding

ROCE (avg)

8.17%

ROE (avg)

13.53%

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

4.67

EV to EBIT

35.67

EV to EBITDA

25.82

EV to Capital Employed

5.15

EV to Sales

4.76

PEG Ratio

Dividend Yield

ROCE (Latest)

14.45%

ROE (Latest)

10.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

Not enough Data to analyse Financial Trend

Here's what is working for Simcere Pharmaceutical Group Ltd.

Operating Cash Flow

Highest at HKD 2,069.03 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 (HKD MM)

Pre-Tax Profit

At HKD 353.76 MM has Grown at 120.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 302.31 MM has Grown at 118.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Dividend Payout Ratio

Highest at 144.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.11% (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

Depreciation

Highest at HKD 191.36 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 191.36 MM has Grown at 9.52%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Simcere Pharmaceutical Group Ltd.

Interest Coverage Ratio

Lowest at 1,192.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at HKD 50 MM

in the last five periods and Increased by 96.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Cash and Eqv

Lowest at HKD 2,116.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.17%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at HKD 2.45

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)