Tianjin Lisheng Pharmaceutical Co., Ltd. (002393) 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

Tianjin Lisheng Pharmaceutical Co., Ltd.

Why is Tianjin Lisheng Pharmaceutical Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 3.49% and Operating profit at 56.75% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At CNY 1.43 MM has Grown at 7.67%
PRE-TAX PROFIT(Q) At CNY 60.96 MM has Fallen at -46.24%
NET PROFIT(Q) At CNY 50.73 MM has Fallen at -51.03%

With ROE of 9.05%, it has a very attractive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of -7.27%, its profits have risen by 127.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 4.6

Below par performance in long term as well as near term

Along with generating -7.27% 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 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 Tianjin Lisheng Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tianjin Lisheng Pharmaceutical Co., Ltd.

-26.81%

-0.22

41.63%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.49%

EBIT Growth (5y)

56.75%

EBIT to Interest (avg)

45.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.26

Tax Ratio

6.95%

Dividend Payout Ratio

54.50%

Pledged Shares

Institutional Holding

ROCE (avg)

2.75%

ROE (avg)

3.32%

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

0.93

EV to EBIT

18.45

EV to EBITDA

11.65

EV to Capital Employed

0.85

EV to Sales

1.40

PEG Ratio

0.08

Dividend Yield

4.49%

ROCE (Latest)

4.62%

ROE (Latest)

9.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 371.51 MM

CASH AND EQV(HY)

Highest at CNY 4,831.86 MM

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 33.02 MM has Fallen at -70.52%

NET PROFIT(Q)

At CNY 26.71 MM has Fallen at -73.99%

ROCE(HY)

Lowest at 3.2%

RAW MATERIAL COST(Y)

Grown by 6.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.95 times

NET SALES(Q)

At CNY 309.35 MM has Fallen at -8.24%

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Tianjin Lisheng Pharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 371.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 4,831.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Tianjin Lisheng Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 33.02 MM has Fallen at -70.52%

over average net sales of the previous four periods of CNY 112.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.71 MM has Fallen at -73.99%

over average net sales of the previous four periods of CNY 102.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 309.35 MM has Fallen at -8.24%

over average net sales of the previous four periods of CNY 337.11 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales