Why is Zhejiang Jolly Pharmaceutical Co., Ltd. ?
1
Flat results in Mar 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.55 times
- INTEREST(Q) Highest at CNY 4.13 MM
2
With ROE of 19.30%, it has a attractive valuation with a 2.76 Price to Book Value
- Over the past year, while the stock has generated a return of -24.95%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.8
- At the current price, the company has a high dividend yield of 2.6
3
Below par performance in long term as well as near term
- Along with generating -24.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Zhejiang Jolly 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 Jolly Pharmaceutical Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zhejiang Jolly Pharmaceutical Co., Ltd.
-24.34%
-0.32
29.28%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
20.33%
EBIT Growth (5y)
41.39%
EBIT to Interest (avg)
40.54
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
0.74
Tax Ratio
15.16%
Dividend Payout Ratio
38.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.95%
ROE (avg)
12.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
2.63
EV to EBIT
13.26
EV to EBITDA
12.13
EV to Capital Employed
2.59
EV to Sales
2.93
PEG Ratio
0.72
Dividend Yield
2.72%
ROCE (Latest)
19.55%
ROE (Latest)
19.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
NET SALES(9M)
At CNY 2,525.19 MM has Grown at 19.21%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.4 times
DIVIDEND PAYOUT RATIO(Y)
Highest at 138.83%
DIVIDEND PER SHARE(HY)
Highest at CNY 2.76
-16What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 354.71 MM
DEBT-EQUITY RATIO
(HY)
Highest at 6.49 %
RAW MATERIAL COST(Y)
Grown by 6.24% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.76 times
INTEREST(Q)
Highest at CNY 4.48 MM
Here's what is working for Zhejiang Jolly Pharmaceutical Co., Ltd.
Inventory Turnover Ratio
Highest at 2.4 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At CNY 2,525.19 MM has Grown at 19.21%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Dividend per share
Highest at CNY 2.76
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CNY)
Dividend Payout Ratio
Highest at 138.83%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Zhejiang Jolly Pharmaceutical Co., Ltd.
Operating Cash Flow
Lowest at CNY 354.71 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at 6.49 % 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
Interest
Highest at CNY 4.48 MM
in the last five periods and Increased by 8.43% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 2.76 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 6.24% (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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