Zhejiang Wecome Pharmaceutical Co., Ltd. (300878) 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 Wecome Pharmaceutical Co., Ltd.

Why is Zhejiang Wecome Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.02%

The company has been able to generate a Return on Capital Employed (avg) of 5.02% signifying low profitability per unit of total capital (equity and debt)

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 -26.87% and Operating profit at -219.84% 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 4.63% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -26.87% and Operating profit at -219.84% over the last 5 years

With a fall in Operating Profit of -22.26%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
NET SALES(HY) At CNY 81.54 MM has Grown at -52.29%
INTEREST(HY) At CNY 3.72 MM has Grown at 25.89%
NET PROFIT(Q) At CNY -59.63 MM has Fallen at -421.37%

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 Wecome Pharmaceutical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wecome Pharmaceutical Co., Ltd.

59.22%

1.12

68.75%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-26.87%

EBIT Growth (5y)

-219.84%

EBIT to Interest (avg)

32.63

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.24

Tax Ratio

12.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.02%

ROE (avg)

4.63%

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

2.98

EV to EBIT

-47.54

EV to EBITDA

-88.15

EV to Capital Employed

2.95

EV to Sales

16.02

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

-6.20%

ROE (Latest)

-15.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

NET SALES(HY)

At CNY 81.54 MM has Grown at -52.29%

INTEREST(HY)

At CNY 3.72 MM has Grown at 25.89%

NET PROFIT(Q)

At CNY -59.63 MM has Fallen at -421.37%

ROCE(HY)

Lowest at -26.7%

PRE-TAX PROFIT(Q)

Lowest at CNY -55.73 MM

RAW MATERIAL COST(Y)

Grown by 145.35% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.56 times

EPS(Q)

Lowest at CNY -0.42

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

Net Sales

At CNY 81.54 MM has Grown at -52.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.72 MM has Grown at 25.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -55.73 MM has Fallen at -680.82%

over average net sales of the previous four periods of CNY -7.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -59.63 MM has Fallen at -421.37%

over average net sales of the previous four periods of CNY -11.44 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -55.73 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY -0.42

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 0.56 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 145.35% (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