Zhejiang Huakang Pharmaceutical Co., Ltd. () 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 Huakang Pharmaceutical Co., Ltd.

Why is Zhejiang Huakang Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 21.96% and Operating profit at -0.13% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 56.72 MM has Grown at 266.45%
ROCE(HY) Lowest at 7.88%
DEBT-EQUITY RATIO (HY) Highest at 69.52 %

With ROE of 8.21%, it has a very attractive valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of 2.47%, its profits have fallen by -15.7%
At the current price, the company has a high dividend yield of 2.7

Underperformed the market in the last 1 year

The stock has generated a return of 2.47% in the last 1 year, much lower 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 Huakang 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 Huakang Pharmaceutical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huakang Pharmaceutical Co., Ltd.

-4.9%

0.02

31.67%

China Shanghai Composite

16.01%

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)

21.96%

EBIT Growth (5y)

-0.13%

EBIT to Interest (avg)

30.17

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.53

Tax Ratio

7.00%

Dividend Payout Ratio

55.56%

Pledged Shares

Institutional Holding

ROCE (avg)

12.63%

ROE (avg)

10.72%

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

1.73

EV to EBIT

25.48

EV to EBITDA

13.64

EV to Capital Employed

1.47

EV to Sales

2.27

PEG Ratio

Dividend Yield

2.67%

ROCE (Latest)

5.75%

ROE (Latest)

8.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

NET SALES(Q)

Highest at CNY 1,093.17 MM

-22What is not working for the Company

INTEREST(HY)

At CNY 56.72 MM has Grown at 266.45%

ROCE(HY)

Lowest at 7.88%

DEBT-EQUITY RATIO (HY)

Highest at 69.52 %

INTEREST COVERAGE RATIO(Q)

Lowest at 225.01

RAW MATERIAL COST(Y)

Grown by 31.91% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 62.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.75 %

PRE-TAX PROFIT(Q)

Lowest at CNY 42.39 MM

NET PROFIT(Q)

Lowest at CNY 34.65 MM

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

Net Sales

At CNY 1,093.17 MM has Grown at 32.67%

over average net sales of the previous four periods of CNY 824 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 1,093.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Zhejiang Huakang Pharmaceutical Co., Ltd.

Interest

At CNY 56.72 MM has Grown at 266.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 225.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 34.65 MM has Fallen at -47.47%

over average net sales of the previous four periods of CNY 65.95 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 69.52 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at CNY 62.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 42.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 42.39 MM has Fallen at -40.8%

over average net sales of the previous four periods of CNY 71.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 34.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 31.91% (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