Zhejiang Jiuzhou Pharmaceutical Co., Ltd. (603456) 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 Jiuzhou Pharmaceutical Co., Ltd.

Why is Zhejiang Jiuzhou Pharmaceutical Co., Ltd. ?

With ROE of 7.55%, it has a very attractive valuation with a 1.93 Price to Book Value

Over the past year, while the stock has generated a return of 18.12%, its profits have fallen by -25.7%
At the current price, the company has a high dividend yield of 2.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Jiuzhou 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 Jiuzhou Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Jiuzhou Pharmaceutical Co., Ltd.

-8.86%

0.35

37.79%

China Shanghai Composite

8.25%

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)

10.94%

EBIT Growth (5y)

7.82%

EBIT to Interest (avg)

60.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.56

Tax Ratio

22.65%

Dividend Payout Ratio

36.67%

Pledged Shares

Institutional Holding

ROCE (avg)

16.01%

ROE (avg)

11.35%

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

1.28

EV to EBIT

12.76

EV to EBITDA

9.08

EV to Capital Employed

1.34

EV to Sales

1.93

PEG Ratio

4.19

Dividend Yield

2.36%

ROCE (Latest)

10.47%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,545.29 MM

INTEREST COVERAGE RATIO(Q)

Highest at 33,845.56

RAW MATERIAL COST(Y)

Fallen by 1.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -30.46 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.2 times

-8What is not working for the Company

NET SALES(HY)

At CNY 2,575.25 MM has Grown at -10.3%

NET PROFIT(HY)

At CNY 387.39 MM has Grown at -26.33%

ROCE(HY)

Lowest at 6.72%

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

Operating Cash Flow

Highest at CNY 1,545.29 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)

Interest Coverage Ratio

Highest at 33,845.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -30.46 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.39% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Net Sales

At CNY 2,575.25 MM has Grown at -10.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 387.39 MM has Grown at -26.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)