Zhejiang Starry Pharmaceutical Co., Ltd. (603520) 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 Starry Pharmaceutical Co., Ltd.

Why is Zhejiang Starry Pharmaceutical Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.74% and Operating profit at -45.95% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.49% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.74% and Operating profit at -45.95% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

CASH AND EQV(HY) Lowest at CNY 690.72 MM
NET SALES(Q) Lowest at CNY 447.26 MM

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 14.49%, its profits have fallen by -232%
At the current price, the company has a high dividend yield of 1.1

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 Starry Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Starry Pharmaceutical Co., Ltd.

18.53%

-0.14

35.78%

China Shanghai Composite

15.45%

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)

11.74%

EBIT Growth (5y)

-45.95%

EBIT to Interest (avg)

2.48

Debt to EBITDA (avg)

7.15

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.45

Tax Ratio

22.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.52%

ROE (avg)

6.49%

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

1.80

EV to EBIT

1308.51

EV to EBITDA

29.38

EV to Capital Employed

1.44

EV to Sales

2.89

PEG Ratio

Dividend Yield

1.08%

ROCE (Latest)

0.11%

ROE (Latest)

-1.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 335.82 MM

PRE-TAX PROFIT(Q)

At CNY 0.65 MM has Grown at 105.85%

RAW MATERIAL COST(Y)

Fallen by -50.09% (YoY

NET PROFIT(Q)

At CNY -0.31 MM has Grown at 97.77%

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 690.72 MM

NET SALES(Q)

Lowest at CNY 447.26 MM

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

Pre-Tax Profit

At CNY 0.65 MM has Grown at 105.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 335.82 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY -0.31 MM has Grown at 97.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -50.09% (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 Starry Pharmaceutical Co., Ltd.

Net Sales

Lowest at CNY 447.26 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 690.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at CNY 7.46 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income