Tonghua Dongbao Pharmaceutical Co., Ltd. (600867) 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

Tonghua Dongbao Pharmaceutical Co., Ltd.

Why is Tonghua Dongbao Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 17.69%

The company has been able to generate a Return on Capital Employed (avg) of 17.69% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at -16.67% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 17.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at -16.67% over the last 5 years

Flat results in Jun 26

PRE-TAX PROFIT(Q) At CNY 158.55 MM has Fallen at -56.67%
INTEREST(Q) At CNY 5.11 MM has Grown at 30.84%
NET PROFIT(Q) At CNY 169.07 MM has Fallen at -45.31%

With ROE of 16.74%, it has a fair valuation with a 2.01 Price to Book Value

Over the past year, while the stock has generated a return of -3.67%, its profits have risen by 896.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 4.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tonghua Dongbao 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 Tonghua Dongbao Pharmaceutical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tonghua Dongbao Pharmaceutical Co., Ltd.

-3.67%

-0.39

33.84%

China Shanghai Composite

3.23%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.32%

EBIT Growth (5y)

-16.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.36

Tax Ratio

21.68%

Dividend Payout Ratio

47.66%

Pledged Shares

Institutional Holding

ROCE (avg)

14.65%

ROE (avg)

17.19%

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

2.01

EV to EBIT

28.66

EV to EBITDA

19.41

EV to Capital Employed

2.20

EV to Sales

4.42

PEG Ratio

0.01

Dividend Yield

4.13%

ROCE (Latest)

7.66%

ROE (Latest)

16.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 932.22 MM

NET SALES(9M)

At CNY 2,320.47 MM has Grown at 20.19%

ROCE(HY)

Highest at 20.02%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.5 times

CASH AND EQV(HY)

Highest at CNY 3,187.91 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.38 times

OPERATING PROFIT(Q)

Highest at CNY 239.83 MM

-7What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 158.55 MM has Fallen at -56.67%

INTEREST(Q)

At CNY 5.11 MM has Grown at 30.84%

NET PROFIT(Q)

At CNY 169.07 MM has Fallen at -45.31%

Here's what is working for Tonghua Dongbao Pharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 932.22 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 (CNY MM)

Inventory Turnover Ratio

Highest at 1.5 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 2,320.47 MM has Grown at 20.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 239.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,187.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Tonghua Dongbao Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 158.55 MM has Fallen at -56.67%

over average net sales of the previous four periods of CNY 365.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 5.11 MM has Grown at 30.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 169.07 MM has Fallen at -45.31%

over average net sales of the previous four periods of CNY 309.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Footer loading