Zhejiang Shapuaisi Pharmaceutical Co. Ltd. (603168) 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 Shapuaisi Pharmaceutical Co. Ltd.

Why is Zhejiang Shapuaisi Pharmaceutical Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.63%

The company has been able to generate a Return on Capital Employed (avg) of 1.63% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at 11.14% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 2.44 times
RAW MATERIAL COST(Y) Grown by 7.89% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 1.76%, its profits have risen by 9.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 1.76% 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 Shapuaisi Pharmaceutical Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Shapuaisi Pharmaceutical Co. Ltd.

-4.13%

-0.38

33.83%

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)

6.32%

EBIT Growth (5y)

11.14%

EBIT to Interest (avg)

-18.09

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.29

Tax Ratio

4.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.63%

ROE (avg)

1.42%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.81

EV to EBIT

-74.47

EV to EBITDA

89.15

EV to Capital Employed

1.78

EV to Sales

6.31

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.38%

ROE (Latest)

-3.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 74.09 MM

PRE-TAX PROFIT(Q)

At CNY 4.61 MM has Grown at 138.69%

NET PROFIT(Q)

At CNY 7.11 MM has Grown at 150.33%

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.44 times

RAW MATERIAL COST(Y)

Grown by 7.89% (YoY

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

Pre-Tax Profit

At CNY 4.61 MM has Grown at 138.69%

over average net sales of the previous four periods of CNY -11.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.11 MM has Grown at 150.33%

over average net sales of the previous four periods of CNY -14.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 74.09 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

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

Inventory Turnover Ratio

Lowest at 2.44 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.89% (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