Zhejiang Garden Biopharmaceutical Co., Ltd. (300401) 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 Garden Biopharmaceutical Co., Ltd.

Why is Zhejiang Garden Biopharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.18% and Operating profit at 3.71% over the last 5 years

With a fall in Net Sales of -15.17%, the company declared Very Negative results in Mar 26

INTEREST(HY) At CNY 16.32 MM has Grown at 5.93%
ROCE(HY) Lowest at 7.51%
INTEREST COVERAGE RATIO(Q) Lowest at 896.17

With ROE of 7.22%, it has a expensive valuation with a 1.63 Price to Book Value

Over the past year, while the stock has generated a return of 59.87%, its profits have fallen by -18.3%
At the current price, the company has a high dividend yield of 1.1

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 Zhejiang Garden Biopharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Garden Biopharmaceutical Co., Ltd.

59.87%

2.07

48.27%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.18%

EBIT Growth (5y)

3.71%

EBIT to Interest (avg)

19.11

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.23

Tax Ratio

14.10%

Dividend Payout Ratio

20.14%

Pledged Shares

Institutional Holding

ROCE (avg)

12.03%

ROE (avg)

12.07%

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

1.63

EV to EBIT

19.48

EV to EBITDA

13.68

EV to Capital Employed

1.57

EV to Sales

5.17

PEG Ratio

Dividend Yield

1.08%

ROCE (Latest)

8.06%

ROE (Latest)

7.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 536.55 MM

-24What is not working for the Company

INTEREST(HY)

At CNY 16.32 MM has Grown at 5.93%

ROCE(HY)

Lowest at 7.51%

INTEREST COVERAGE RATIO(Q)

Lowest at 896.17

RAW MATERIAL COST(Y)

Grown by 9.22% (YoY

NET SALES(Q)

Lowest at CNY 276.88 MM

OPERATING PROFIT(Q)

Lowest at CNY 65.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 23.79 %

PRE-TAX PROFIT(Q)

Lowest at CNY 56.46 MM

NET PROFIT(Q)

Lowest at CNY 49.87 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Zhejiang Garden Biopharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 536.55 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Zhejiang Garden Biopharmaceutical Co., Ltd.

Interest Coverage Ratio

Lowest at 896.17

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 56.46 MM has Fallen at -49.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 49.87 MM has Fallen at -47.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 16.32 MM has Grown at 5.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 276.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -15.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 65.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 23.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 56.46 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 49.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 9.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales