Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd. (000766) 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 Golden-Horse Pharmaceutical Industry Co., Ltd.

Why is Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.62%

The company has been able to generate a Return on Capital Employed (avg) of 2.62% 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 -2.78% and Operating profit at 18.71% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.50% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 18.46 MM has Grown at -58.14%
INTEREST COVERAGE RATIO(Q) Lowest at 142.02
NET SALES(HY) At CNY 577.81 MM has Grown at -10.62%

With ROE of 1.37%, it has a very expensive valuation with a 9.01 Price to Book Value

Over the past year, while the stock has generated a return of -29.49%, its profits have fallen by -47.8%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.49% returns

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 Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.

-38.61%

0.18

42.92%

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)

-2.78%

EBIT Growth (5y)

18.71%

EBIT to Interest (avg)

1.41

Debt to EBITDA (avg)

8.25

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.32

Tax Ratio

17.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.17%

ROE (avg)

1.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

729

Industry P/E

Price to Book Value

9.98

EV to EBIT

231.55

EV to EBITDA

160.90

EV to Capital Employed

6.42

EV to Sales

21.15

PEG Ratio

Dividend Yield

ROCE (Latest)

2.77%

ROE (Latest)

1.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.25% (YoY

CASH AND EQV(HY)

Highest at CNY 986.19 MM

DEBT-EQUITY RATIO (HY)

Lowest at 66.04 %

-44What is not working for the Company

NET SALES(Q)

At CNY 257.06 MM has Fallen at -25.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 100.7

OPERATING CASH FLOW(Y)

Lowest at CNY 83.57 MM

ROCE(HY)

Lowest at 1.07%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.87 times

OPERATING PROFIT(Q)

Lowest at CNY 21.98 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.9 times

INTEREST(Q)

Highest at CNY 21.83 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.55 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.53 MM

NET PROFIT(Q)

Lowest at CNY -2.08 MM

EPS(Q)

Lowest at CNY -0

Here's what is working for Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.

Cash and Eqv

Highest at CNY 986.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 66.04 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.25% (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

At CNY 15.68 MM has Grown at inf%

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 (CNY MM)

Here's what is not working for Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.

Net Sales

At CNY 257.06 MM has Fallen at -25.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 100.7 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 1.53 MM has Fallen at -84.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.08 MM has Fallen at -139.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 172.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 21.98 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.87 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 83.57 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 21.83 MM

in the last five periods and Increased by 5.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 37.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -2.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 0.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.93 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income