Zhejiang Medicine Co., Ltd. (600216) 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 Medicine Co., Ltd.

Why is Zhejiang Medicine Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.64% and Operating profit at 14.49% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 2,018.84 MM
DEBT-EQUITY RATIO (HY) Lowest at -19.75 %
CASH AND EQV(HY) Highest at CNY 6,124.58 MM

With ROE of 12.47%, it has a very attractive valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of 7.02%, its profits have risen by 278.4% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 7.02% 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 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 Medicine Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Medicine Co., Ltd.

-18.31%

2.68

26.99%

China Shanghai Composite

21.43%

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)

1.64%

EBIT Growth (5y)

-5.35%

EBIT to Interest (avg)

22.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.76

Tax Ratio

15.15%

Dividend Payout Ratio

30.61%

Pledged Shares

Institutional Holding

ROCE (avg)

9.04%

ROE (avg)

7.35%

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

1.02

EV to EBIT

12.87

EV to EBITDA

6.97

EV to Capital Employed

1.02

EV to Sales

1.04

PEG Ratio

Dividend Yield

3.10%

ROCE (Latest)

7.92%

ROE (Latest)

5.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,681.2 MM

DEBT-EQUITY RATIO (HY)

Lowest at -19.88 %

CASH AND EQV(HY)

Highest at CNY 6,657.18 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.2 times

-10What is not working for the Company

NET PROFIT(HY)

At CNY 244.52 MM has Grown at -66.89%

RAW MATERIAL COST(Y)

Grown by 16.38% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.45 times

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

Operating Cash Flow

Highest at CNY 1,681.2 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)

Debt-Equity Ratio

Lowest at -19.88 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 6,657.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Profit

At CNY 244.52 MM has Grown at -66.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 4.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.38% (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