Topchoice Medical Corp. (600763) 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

Topchoice Medical Corp.

Why is Topchoice Medical Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.45% and Operating profit at 2.76% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 802.17 MM
ROCE(HY) Lowest at 12.2%
INTEREST(Q) At CNY 11.88 MM has Grown at 11.37%

With ROE of 14.06%, it has a expensive valuation with a 4.73 Price to Book Value

Over the past year, while the stock has generated a return of 6.62%, its profits have fallen by -0.7%
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 6.62% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Topchoice Medical Corp. should be less than 10%
Overall Portfolio exposure to Hospital should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hospital)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Topchoice Medical Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Topchoice Medical Corp.

-12.83%

0.40

30.50%

China Shanghai Composite

13.33%

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)

8.45%

EBIT Growth (5y)

2.76%

EBIT to Interest (avg)

24.15

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.66

Tax Ratio

18.02%

Dividend Payout Ratio

40.16%

Pledged Shares

Institutional Holding

ROCE (avg)

27.45%

ROE (avg)

20.94%

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

4.73

EV to EBIT

27.85

EV to EBITDA

20.36

EV to Capital Employed

4.86

EV to Sales

6.70

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

17.43%

ROE (Latest)

14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.47% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 17.06 %

NET SALES(Q)

Highest at CNY 841.77 MM

PRE-TAX PROFIT(Q)

Highest at CNY 253.21 MM

NET PROFIT(Q)

Highest at CNY 192.34 MM

EPS(Q)

Highest at CNY 0.43

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 802.17 MM

ROCE(HY)

Lowest at 12.2%

INTEREST(Q)

At CNY 11.88 MM has Grown at 11.37%

CASH AND EQV(HY)

Lowest at CNY 1,061.68 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 65.64 times

Here's what is working for Topchoice Medical Corp.

Net Sales

Highest at CNY 841.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 253.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 192.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 17.06 %

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 0.47% (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 Topchoice Medical Corp.

Interest

At CNY 11.88 MM has Grown at 11.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 802.17 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 1,061.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 65.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio