ScoreWhy is Zhejiang Huakang Pharmaceutical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 17.14% and Operating profit at -4.39% over the last 5 years
2
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST(HY) At CNY 23.73 MM has Grown at 19.13%
- OPERATING CASH FLOW(Y) Lowest at CNY 268.76 MM
- ROCE(HY) Lowest at 8.54%
3
With ROE of 8.21%, it has a very attractive valuation with a 1.69 Price to Book Value
- Over the past year, while the stock has generated a return of -2.64%, its profits have fallen by -15.7%
- At the current price, the company has a high dividend yield of 2.8
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.64% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow 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.
0.13%
-0.18
30.92%
China Shanghai Composite
14.61%
1.04
14.52%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.14%
EBIT Growth (5y)
-4.39%
EBIT to Interest (avg)
30.17
Debt to EBITDA (avg)
1.38
Net Debt to Equity (avg)
0.67
Sales to Capital Employed (avg)
0.54
Tax Ratio
7.00%
Dividend Payout Ratio
55.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.63%
ROE (avg)
10.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.69
EV to EBIT
24.93
EV to EBITDA
13.34
EV to Capital Employed
1.43
EV to Sales
2.22
PEG Ratio
NA
Dividend Yield
2.75%
ROCE (Latest)
5.75%
ROE (Latest)
8.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NET SALES(Q)
Highest at CNY 808.51 MM
EPS(Q)
Highest at CNY 0.22
-21What is not working for the Company
INTEREST(HY)
At CNY 23.73 MM has Grown at 19.13%
OPERATING CASH FLOW(Y)
Lowest at CNY 268.76 MM
ROCE(HY)
Lowest at 8.54%
DEBT-EQUITY RATIO
(HY)
Highest at 66.88 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.82%
INTEREST COVERAGE RATIO(Q)
Lowest at 554.28
RAW MATERIAL COST(Y)
Grown by 20.93% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.67%
OPERATING PROFIT MARGIN(Q)
Lowest at 10.7 %
Here's what is working for Zhejiang Huakang Pharmaceutical Co., Ltd.
Net Sales
Highest at CNY 808.51 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 808.51 MM has Grown at 16.12%
over average net sales of the previous four periods of CNY 696.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
EPS
Highest at CNY 0.22
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Here's what is not working for Zhejiang Huakang Pharmaceutical Co., Ltd.
Interest
At CNY 15.61 MM has Grown at 92.28%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 554.28
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 66.88 % 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 4.82% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at CNY 268.76 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
Highest at CNY 15.61 MM
in the last five periods and Increased by 92.28% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit Margin
Lowest at 10.7 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 3.67%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 20.93% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
