Zhejiang Cheng Yi Pharmaceutical Co., Ltd. (603811) 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

Zhejiang Cheng Yi Pharmaceutical Co., Ltd.

Why is Zhejiang Cheng Yi Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.64% and Operating profit at 3.90% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 308.94 MM
ROCE(HY) Highest at 17.64%
DEBT-EQUITY RATIO (HY) Lowest at -6.68 %

With ROE of 18.55%, it has a very attractive valuation with a 3.30 Price to Book Value

Over the past year, while the stock has generated a return of 39.40%, 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

Market Beating Performance

The stock has generated a return of 39.40% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

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.

35.31%

1.44

43.15%

China Shanghai Composite

15.17%

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)

2.64%

EBIT Growth (5y)

3.90%

EBIT to Interest (avg)

18.15

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.46

Tax Ratio

9.84%

Dividend Payout Ratio

39.72%

Pledged Shares

Institutional Holding

ROCE (avg)

11.15%

ROE (avg)

16.05%

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

3.30

EV to EBIT

29.18

EV to EBITDA

17.55

EV to Capital Employed

3.28

EV to Sales

5.58

PEG Ratio

0.29

Dividend Yield

1.93%

ROCE (Latest)

11.23%

ROE (Latest)

18.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 308.94 MM

ROCE(HY)

Highest at 17.64%

DEBT-EQUITY RATIO (HY)

Lowest at -6.68 %

RAW MATERIAL COST(Y)

Fallen by -30.72% (YoY

-10What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.23 times

OPERATING PROFIT(Q)

Lowest at CNY 25.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.13 %

PRE-TAX PROFIT(Q)

Lowest at CNY 26.35 MM

NET PROFIT(Q)

Lowest at CNY 30.3 MM

EPS(Q)

Lowest at CNY 0.1

Here's what is working for Zhejiang Cheng Yi Pharmaceutical Co., Ltd.

Debt-Equity Ratio

Lowest at -6.68 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at CNY 308.94 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -30.72% (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 Zhejiang Cheng Yi Pharmaceutical Co., Ltd.

Pre-Tax Profit

At CNY 26.35 MM has Fallen at -51.52%

over average net sales of the previous four periods of CNY 54.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 30.3 MM has Fallen at -48.79%

over average net sales of the previous four periods of CNY 59.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 25.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 14.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 26.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 30.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio