Why is Zhejiang Hisoar Pharmaceutical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.16%
- The company has been able to generate a Return on Capital Employed (avg) of 2.16% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -6.39% and Operating profit at -180.98% over the last 5 years
3
Negative results in Mar 25
- DEBT-EQUITY RATIO (HY) Highest at -1.88 %
- INTEREST(Q) At CNY 8.04 MM has Grown at 38.17%
- RAW MATERIAL COST(Y) Grown by 13.43% (YoY)
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 0.63%, its profits have risen by 49.7%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 0.63% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
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 Hisoar Pharmaceutical Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zhejiang Hisoar Pharmaceutical Co., Ltd.
-100.0%
0.44
36.27%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.39%
EBIT Growth (5y)
-180.98%
EBIT to Interest (avg)
3.95
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.29
Tax Ratio
1.03%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.16%
ROE (avg)
1.59%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.82
EV to EBIT
-44.37
EV to EBITDA
70.31
EV to Capital Employed
1.83
EV to Sales
5.18
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.12%
ROE (Latest)
-2.54%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
9What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 10.67 MM has Grown at 142.36%
NET PROFIT(9M)
Higher at CNY -129.51 MM
-6What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -1.88 %
INTEREST(Q)
At CNY 8.04 MM has Grown at 38.17%
RAW MATERIAL COST(Y)
Grown by 13.43% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.69%
Here's what is working for Zhejiang Hisoar Pharmaceutical Co., Ltd.
Pre-Tax Profit
At CNY 10.67 MM has Grown at 142.36%
over average net sales of the previous four periods of CNY -25.18 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 7.13 MM has Grown at 127.55%
over average net sales of the previous four periods of CNY -25.89 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Here's what is not working for Zhejiang Hisoar Pharmaceutical Co., Ltd.
Interest
At CNY 8.04 MM has Grown at 38.17%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at -1.88 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 3.69%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 13.43% (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






