Why is Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd. ?
1
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)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -2.59% and Operating profit at 24.16% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 1.50% signifying low profitability per unit of shareholders funds
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.37%
- NET PROFIT(Q) Lowest at CNY 5.23 MM
3
With ROE of 2.66%, it has a expensive valuation with a 9.51 Price to Book Value
- Over the past year, while the stock has generated a return of 75.42%, its profits have risen by 26.7% ; the PEG ratio of the company is 13.4
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, High Return
Absolute
Risk Adjusted
Volatility
Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.
99.93%
1.62
41.48%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.59%
EBIT Growth (5y)
24.16%
EBIT to Interest (avg)
0.63
Debt to EBITDA (avg)
7.97
Net Debt to Equity (avg)
0.67
Sales to Capital Employed (avg)
0.34
Tax Ratio
17.35%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.62%
ROE (avg)
1.50%
Valuation Key Factors 
Factor
Value
P/E Ratio
357
Industry P/E
Price to Book Value
9.51
EV to EBIT
151.75
EV to EBITDA
106.65
EV to Capital Employed
6.11
EV to Sales
17.65
PEG Ratio
13.39
Dividend Yield
NA
ROCE (Latest)
4.03%
ROE (Latest)
2.66%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
ROCE(HY)
Highest at 2.64%
PRE-TAX PROFIT(Q)
At CNY 9.8 MM has Grown at 89.51%
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.37%
NET PROFIT(Q)
Lowest at CNY 5.23 MM
Here's what is working for Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.
Pre-Tax Profit
At CNY 9.8 MM has Grown at 89.51%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Here's what is not working for Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.
Debtors Turnover Ratio
Lowest at 2.37% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Profit
Lowest at CNY 5.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)






