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 hold?

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

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Medicine Co., Ltd.

11.1%

2.68

26.99%

China Shanghai Composite

15.17%

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)

4.64%

EBIT Growth (5y)

14.49%

EBIT to Interest (avg)

22.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.77

Tax Ratio

15.15%

Dividend Payout Ratio

30.66%

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

1.22

EV to EBIT

7.89

EV to EBITDA

5.25

EV to Capital Employed

1.27

EV to Sales

1.28

PEG Ratio

0.04

Dividend Yield

2.59%

ROCE (Latest)

16.10%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

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

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,792.51

RAW MATERIAL COST(Y)

Grown by 27.08% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 244.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.3 %

PRE-TAX PROFIT(Q)

Lowest at CNY 268.6 MM

NET PROFIT(Q)

Lowest at CNY 242.9 MM

EPS(Q)

Lowest at CNY 0.27

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

Operating Cash Flow

Highest at CNY 2,018.84 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 -19.75 % 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 6,124.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Interest Coverage Ratio

Lowest at 3,792.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 244.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 268.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 268.6 MM has Fallen at -34.89%

over average net sales of the previous four periods of CNY 412.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 242.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 242.9 MM has Fallen at -36.39%

over average net sales of the previous four periods of CNY 381.88 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 27.08% (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