Why is Zhejiang Cheng Yi Pharmaceutical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.65% and Operating profit at 3.26% over the last 5 years
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 262.17 MM
- NET PROFIT(HY) At CNY 129.42 MM has Grown at 58.54%
- ROCE(HY) Highest at 16.95%
3
With ROE of 18.55%, it has a very attractive valuation with a 3.34 Price to Book Value
- Over the past year, while the stock has generated a return of 31.31%, its profits have risen by 60.7% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 1.9
4
Market Beating Performance
- The stock has generated a return of 31.31% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%
How much should you hold?
- Overall Portfolio exposure to Zhejiang Cheng Yi Pharmaceutical Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zhejiang Cheng Yi Pharmaceutical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang Cheng Yi Pharmaceutical Co., Ltd.
31.31%
1.35
42.22%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
2.65%
EBIT Growth (5y)
3.26%
EBIT to Interest (avg)
18.15
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
0.44
Tax Ratio
9.84%
Dividend Payout Ratio
39.72%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.15%
ROE (avg)
16.05%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
3.34
EV to EBIT
29.58
EV to EBITDA
17.79
EV to Capital Employed
3.32
EV to Sales
5.66
PEG Ratio
0.30
Dividend Yield
1.91%
ROCE (Latest)
11.23%
ROE (Latest)
18.55%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 262.17 MM
NET PROFIT(HY)
At CNY 129.42 MM has Grown at 58.54%
ROCE(HY)
Highest at 16.95%
DEBT-EQUITY RATIO
(HY)
Lowest at 1.71 %
INTEREST COVERAGE RATIO(Q)
Highest at 3,347.7
RAW MATERIAL COST(Y)
Fallen by -16.16% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 9.83%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Zhejiang Cheng Yi Pharmaceutical Co., Ltd.
Interest Coverage Ratio
Highest at 3,347.7
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At CNY 129.42 MM has Grown at 58.54%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at 1.71 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at CNY 262.17 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Highest at 9.83%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -16.16% (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






