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 -6.14%, 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 23.91% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.14% 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, High Return

Absolute

Risk Adjusted

Volatility

Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd.

-5.65%

1.23

37.57%

China Shanghai Composite

23.91%

1.73

13.79%

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)

0.63

Debt to EBITDA (avg)

7.97

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.32

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

658

Industry P/E

Price to Book Value

9.01

EV to EBIT

210.44

EV to EBITDA

146.23

EV to Capital Employed

5.84

EV to Sales

19.22

PEG Ratio

Dividend Yield

ROCE (Latest)

2.77%

ROE (Latest)

1.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.41% (YoY

-26What is not working for the Company

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%

ROCE(HY)

Lowest at 1.39%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.94 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.02 times

OPERATING PROFIT(Q)

Lowest at CNY 29.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.84 %

PRE-TAX PROFIT(Q)

Fallen at -30.77%

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

Raw Material Cost

Fallen by -9.41% (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 Golden-Horse Pharmaceutical Industry Co., Ltd.

Net Profit

At CNY 18.46 MM has Grown at -58.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 142.02 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

Operating Profit

Lowest at CNY 29.53 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)

Net Sales

At CNY 577.81 MM has Grown at -10.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0.94 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.02 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 Profit Margin

Lowest at 9.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -30.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)