Yantai Zhenghai Bio-Tech Co., Ltd. (300653) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yantai Zhenghai Bio-Tech Co., Ltd.

Why is Yantai Zhenghai Bio-Tech Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.57% and Operating profit at -5.39% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(HY) At CNY 0.01 MM has Grown at 85.52%
OPERATING CASH FLOW(Y) Lowest at CNY 130.82 MM
NET SALES(9M) At CNY 257.19 MM has Grown at -10.38%

With ROE of 10.36%, it has a expensive valuation with a 4.15 Price to Book Value

Over the past year, while the stock has generated a return of -13.28%, its profits have fallen by -45.6%
At the current price, the company has a high dividend yield of 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.28% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Yantai Zhenghai Bio-Tech Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yantai Zhenghai Bio-Tech Co., Ltd.

-4.09%

-0.27

29.08%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.57%

EBIT Growth (5y)

-5.39%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

0.43

Tax Ratio

10.86%

Dividend Payout Ratio

60.69%

Pledged Shares

Institutional Holding

ROCE (avg)

62.58%

ROE (avg)

17.86%

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

4.15

EV to EBIT

35.12

EV to EBITDA

27.58

EV to Capital Employed

11.04

EV to Sales

8.47

PEG Ratio

Dividend Yield

2.33%

ROCE (Latest)

31.44%

ROE (Latest)

10.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.17% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.96%

-29What is not working for the Company

INTEREST(HY)

At CNY 0.01 MM has Grown at 85.52%

OPERATING CASH FLOW(Y)

Lowest at CNY 130.82 MM

NET SALES(9M)

At CNY 257.19 MM has Grown at -10.38%

ROCE(HY)

Lowest at 11%

INTEREST COVERAGE RATIO(Q)

Lowest at 244,358.3

PRE-TAX PROFIT(Q)

At CNY 16.61 MM has Fallen at -49.33%

NET PROFIT(Q)

At CNY 16.35 MM has Fallen at -44.03%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.78%

Here's what is working for Yantai Zhenghai Bio-Tech Co., Ltd.

Inventory Turnover Ratio

Highest at 1.96%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.17% (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 Yantai Zhenghai Bio-Tech Co., Ltd.

Interest

At CNY 0.01 MM has Grown at 85.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 244,358.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 16.61 MM has Fallen at -49.33%

over average net sales of the previous four periods of CNY 32.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 16.35 MM has Fallen at -44.03%

over average net sales of the previous four periods of CNY 29.21 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 257.19 MM has Grown at -10.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 130.82 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 5.78%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio