Why is Tianjin Lisheng Pharmaceutical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.82%
- The company has been able to generate a Return on Capital Employed (avg) of 1.82% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -0.70% and Operating profit at -19.02% over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(9M) At CNY 135.07 MM has Grown at -59.09%
- OPERATING CASH FLOW(Y) Lowest at CNY 40.29 MM
- INTEREST(HY) At CNY 1.32 MM has Grown at 12.45%
4
With ROE of 8.56%, it has a attractive valuation with a 1.16 Price to Book Value
- Over the past year, while the stock has generated a return of 23.90%, its profits have risen by 15.4% ; the PEG ratio of the company is 0.9
- At the current price, the company has a high dividend yield of 1.1
How much should you hold?
- Overall Portfolio exposure to Tianjin Lisheng 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 Tianjin Lisheng Pharmaceutical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tianjin Lisheng Pharmaceutical Co., Ltd.
-100.0%
0.85
37.71%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.70%
EBIT Growth (5y)
-19.02%
EBIT to Interest (avg)
34.34
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
0.25
Tax Ratio
14.16%
Dividend Payout Ratio
48.50%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.82%
ROE (avg)
3.32%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.16
EV to EBIT
95.14
EV to EBITDA
30.99
EV to Capital Employed
1.27
EV to Sales
2.88
PEG Ratio
0.90
Dividend Yield
1.11%
ROCE (Latest)
1.34%
ROE (Latest)
8.56%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -14.6% (YoY
CASH AND EQV(HY)
Highest at CNY 4,488.46 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 2.66%
-10What is not working for the Company
NET PROFIT(9M)
At CNY 135.07 MM has Grown at -59.09%
OPERATING CASH FLOW(Y)
Lowest at CNY 40.29 MM
INTEREST(HY)
At CNY 1.32 MM has Grown at 12.45%
Here's what is working for Tianjin Lisheng Pharmaceutical Co., Ltd.
Cash and Eqv
Highest at CNY 4,488.46 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 2.66%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -14.6% (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 Tianjin Lisheng Pharmaceutical Co., Ltd.
Net Profit
At CNY 135.07 MM has Grown at -59.09%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 1.32 MM has Grown at 12.45%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 40.29 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






