ScoreWhy is Zhejiang Huakang Pharmaceutical Co., Ltd. ?
1
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
2
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 %
3
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
4
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 ReportHow 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 Huakang Pharmaceutical Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zhejiang Huakang Pharmaceutical Co., Ltd.
-28.29%
0.02
31.67%
China Shanghai Composite
16.78%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
28.31%
EBIT Growth (5y)
-0.81%
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
75.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.63%
ROE (avg)
10.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
1.18
EV to EBIT
27.39
EV to EBITDA
13.55
EV to Capital Employed
1.10
EV to Sales
1.42
PEG Ratio
NA
Dividend Yield
1.56%
ROCE (Latest)
4.00%
ROE (Latest)
4.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Bearish
Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NET SALES(HY)
At CNY 2,416.54 MM has Grown at 59.8%
OPERATING CASH FLOW(Y)
Highest at CNY 452.35 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.15 times
-34What is not working for the Company
INTEREST(HY)
At CNY 57.55 MM has Grown at 142.56%
ROCE(HY)
Lowest at 4.29%
DEBT-EQUITY RATIO
(HY)
Highest at 81.6 %
INTEREST COVERAGE RATIO(Q)
Lowest at 177.91
PRE-TAX PROFIT(Q)
Lowest at CNY 26.79 MM
NET PROFIT(Q)
Lowest at CNY 22.4 MM
RAW MATERIAL COST(Y)
Grown by 40.9% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 50.67 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.27 %
EPS(Q)
Lowest at CNY 0.07
Here's what is working for Zhejiang Huakang Pharmaceutical Co., Ltd.
Net Sales
At CNY 2,416.54 MM has Grown at 59.8%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Operating Cash Flow
Highest at CNY 452.35 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 6.15 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Zhejiang Huakang Pharmaceutical Co., Ltd.
Interest
At CNY 57.55 MM has Grown at 142.56%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 177.91
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
Lowest at CNY 26.79 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 26.79 MM has Fallen at -52.1%
over average net sales of the previous four periods of CNY 55.93 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 22.4 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Profit
At CNY 22.4 MM has Fallen at -54.49%
over average net sales of the previous four periods of CNY 49.23 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 81.6 % 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
Operating Profit
Lowest at CNY 50.67 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.27 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
EPS
Lowest at CNY 0.07
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Raw Material Cost
Grown by 40.9% (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
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