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)

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 -1.65% and Operating profit at 20.86% 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

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 122.16 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 2.29 times
INTEREST COVERAGE RATIO(Q) Lowest at 127.34

With ROE of 2.66%, it has a expensive valuation with a 10.94 Price to Book Value

Over the past year, while the stock has generated a return of 3.36%, its profits have risen by 26.7% ; the PEG ratio of the company is 15.4

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, Medium Return

Absolute

Risk Adjusted

Volatility

Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.

6.22%

0.32

41.34%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.65%

EBIT Growth (5y)

20.86%

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

Pledged Shares

Institutional Holding

ROCE (avg)

2.62%

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

411

Industry P/E

Price to Book Value

10.94

EV to EBIT

173.05

EV to EBITDA

121.62

EV to Capital Employed

6.97

EV to Sales

20.13

PEG Ratio

15.40

Dividend Yield

ROCE (Latest)

4.03%

ROE (Latest)

2.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 122.16 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.29 times

INTEREST COVERAGE RATIO(Q)

Lowest at 127.34

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.92 times

NET SALES(Q)

Lowest at CNY 242.27 MM

OPERATING PROFIT(Q)

Lowest at CNY 26.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.79 %

NET PROFIT(Q)

Fallen at -28.78%

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

Net Sales

At CNY 242.27 MM has Fallen at -24.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 122.16 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 127.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.29 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

Net Sales

Lowest at CNY 242.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 26.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -28.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 0.92 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 0.46 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income