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. ?

With a growth in Net Profit of 806.57%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 655.81 MM
ROCE(HY) Highest at 18.09%
RAW MATERIAL COST(Y) Fallen by -0.79% (YoY)

With ROE of 6.45%, it has a fair valuation with a 2.62 Price to Book Value

Over the past year, while the stock has generated a return of 17.46%, its profits have fallen by -12.5%
At the current price, the company has a high dividend yield of 3.1

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tonghua Dongbao Pharmaceutical Co., Ltd.

2.21%

-0.08

22.92%

China Shanghai Composite

23.91%

1.58

14.20%

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

Tax Ratio is Negative%

Dividend Payout Ratio

47.66%

Pledged Shares

Institutional Holding

ROCE (avg)

17.69%

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

2.12

EV to EBIT

30.35

EV to EBITDA

20.56

EV to Capital Employed

2.33

EV to Sales

4.68

PEG Ratio

0.01

Dividend Yield

7.15%

ROCE (Latest)

7.66%

ROE (Latest)

16.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 894.73 MM

NET SALES(HY)

At CNY 1,515.29 MM has Grown at 25.37%

INTEREST COVERAGE RATIO(Q)

Highest at 3,965.27

RAW MATERIAL COST(Y)

Fallen by -9.64% (YoY

NET PROFIT(9M)

Higher at CNY 1,128.04 MM

CASH AND EQV(HY)

Highest at CNY 3,302.28 MM

DEBT-EQUITY RATIO (HY)

Lowest at -15.25 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.4 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.2 times

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 154.06 MM has Fallen at -55.91%

NET PROFIT(Q)

At CNY 126.8 MM has Fallen at -58.4%

INTEREST(9M)

At CNY 14.7 MM has Grown at 6.27%

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

Interest Coverage Ratio

Highest at 3,965.27

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At CNY 1,515.29 MM has Grown at 25.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 894.73 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 3,302.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -15.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.64% (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 Tonghua Dongbao Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 154.06 MM has Fallen at -55.91%

over average net sales of the previous four periods of CNY 349.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 126.8 MM has Fallen at -58.4%

over average net sales of the previous four periods of CNY 304.84 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 14.7 MM has Grown at 6.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)