Why is Topchoice Medical Corp. ?
1
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
2
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%
3
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
4
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%
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 Hospital)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Topchoice Medical Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Topchoice Medical Corp.
-12.36%
0.40
30.50%
China Shanghai Composite
23.91%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
3.02%
EBIT Growth (5y)
-1.50%
EBIT to Interest (avg)
24.15
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.65
Tax Ratio
18.02%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
27.45%
ROE (avg)
20.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
2.45
EV to EBIT
15.08
EV to EBITDA
11.75
EV to Capital Employed
2.59
EV to Sales
3.58
PEG Ratio
11.22
Dividend Yield
1.33%
ROCE (Latest)
17.14%
ROE (Latest)
13.39%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
4What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 3,715.22
RAW MATERIAL COST(Y)
Fallen by 0.79% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 7.97 %
-5What is not working for the Company
ROCE(HY)
Lowest at 11.7%
INTEREST(Q)
At CNY 6.43 MM has Grown at 16.52%
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.53 times
Here's what is working for Topchoice Medical Corp.
Interest Coverage Ratio
Highest at 3,715.22
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 7.97 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0.79% (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 6.43 MM has Grown at 16.52%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 10.53 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






