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Zhejiang Medicine Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: CNE0000010J2
  • SHG: 600216
CNY
12.72
-0.1 (-0.78%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
Poor Management Efficiency with a low ROCE of 9.04%
  • The company has been able to generate a Return on Capital Employed (avg) of 9.04% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 1.64% and Operating profit at -5.35% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 7.35% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.64% and Operating profit at -5.35% over the last 5 years
4
Flat results in Jun 26
  • NET PROFIT(9M) At CNY 547.23 MM has Grown at -45.28%
  • INTEREST(Q) Highest at CNY 6.48 MM
5
With ROE of 5.61%, it has a fair valuation with a 0.97 Price to Book Value
  • Over the past year, while the stock has generated a return of -11.77%, its profits have fallen by -53%
6
Underperformed the market in the last 1 year
  • Even though the market (China Shanghai Composite) has generated returns of 3.40% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.77% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Zhejiang Medicine Co., Ltd. should be less than 10%
  2. 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 Medicine Co., Ltd. for you?

Medium Risk, High Return

Absolute
Risk Adjusted
Volatility
Zhejiang Medicine Co., Ltd.
-11.67%
0.93
34.02%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
24.89
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.76
Tax Ratio
21.01%
Dividend Payout Ratio
30.61%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.00%
ROE (avg)
7.35%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.97
EV to EBIT
12.08
EV to EBITDA
6.54
EV to Capital Employed
0.96
EV to Sales
0.98
PEG Ratio
NA
Dividend Yield
3.27%
ROCE (Latest)
7.92%
ROE (Latest)
5.61%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
DEBT-EQUITY RATIO (HY)

Lowest at -25.45 %

RAW MATERIAL COST(Y)

Fallen by -11.51% (YoY

CASH AND EQV(HY)

Highest at CNY 7,243.86 MM

NET PROFIT(Q)

Highest at CNY 302.71 MM

EPS(Q)

Highest at CNY 0.34

-8What is not working for the Company
NET PROFIT(9M)

At CNY 547.23 MM has Grown at -45.28%

INTEREST(Q)

Highest at CNY 6.48 MM

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

Debt-Equity Ratio
Lowest at -25.45 % 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

Net Profit
Highest at CNY 302.71 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit
At CNY 302.71 MM has Grown at 61.67%
over average net sales of the previous four periods of CNY 187.24 MM
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY 0.34
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 7,243.86 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -11.51% (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 Medicine Co., Ltd.

Interest
At CNY 6.48 MM has Grown at 34.45%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest
Highest at CNY 6.48 MM
in the last five periods and Increased by 34.45% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

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